"We should be doing more in China." ~ JC Parets during this morning's internal Analyst meeting.

This, coupled with my feeling that we need to be more aggressive in the stock market right now as the potential profits on the upside could be quite meaningful, playing in China is as aggressive as it gets.

A few years back, Robinhood made a big splash in the retail trading world by offering Commission-Free options trading.

Retail traders and the media that served them rejoiced! 

"This is a game-changer!" they shouted.

And in some ways it was. But not in the way you might think.

It changed the game for retail options brokers to be able to attract multitudes more sheep to get shorn. How?

For one thing, retail brokers are able to command top dollar from market-making firms who pay the brokers for the opportunity to take the other side of retail trades. This is called Payment for Order Flow (PFOF).

From Robinhood's August 7, 2024 earnings report:

In the first half of 2024, Robinhood earned substantial revenue from payment for order flow (PFOF), particularly from options trading.

No need to get cute, and no need for an elaborate explanation of what's going on.

Quite simply, we're in a bull market. And it would be irresponsible to think that technology and high beta names won't be playing catchup soon.

We could try to pick the individual winners, or we can just buy a basket. Today's trade is that.

Here's a current one-year chart of ARK Innovation ETF $ARKK:

At Portfolio Accelerator today, Uber was a name that was getting everybody excited. It looks like it's setting up for another run to and through all-time highs.

A bank from one of the world's largest economies is breaking out. How bearish can the stock market be in an environment like that?

The breakout is a new all-time high, and you guys know how I feel about new all-time highs. (hint: I love them)

Market conditions feel to be improving and taking a shot on some high beta names might be well worth our effort in the coming weeks.

As such, today's trade is in a name that has the potential to 5x or more if I get the follow-through I'm betting on.

Literally.

The trade today is in a company that actually makes money, minting coins. You know, the coins you drop in the pinball machine.

So, no matter how you think about it, the fundamentalists cannot say that this company does not make money. It always makes money.

Fun and word games aside, we've got a trade that has signaled the next big move and today's trading action is offering us a nice pullback in which to get involved at better prices.

The market continues to send signals that nearby risks are elevated, and there is no clear indication to us in which direction the next sustained move will come.

So, as has been the vibe for the past couple of weeks, I'm looking for trades that can offer my portfolio some diversification. 

The Analysts here at All Star Charts were discussing Natural Gas in a recent analyst meeting, and the feeling is that 'ol Natty might be putting in a bottom and ready to reverse higher.

It's certainly got me in the mood to 'F around and find out.'

With yesterday's market action firing, potentially, another warning shot that Q4 trading will be challenging, I'm on the hunt for opportunities that may be a bit more uncorrelated to the risk I currently have on the books.

One such opportunity is presenting itself in the bond market and we're going to position ourselves to win both in the short-term or the longer-term.

My analyst team took a look up north, eh!

And what did they find? A liar standing next to a whole in the ground. (Old gold speculators joke).

While that line might be a joke, nobody will laughing at today's trade idea if this stock makes a run to anywhere near our price targets.

Hey everyone. If you caught our livestream this afternoon at the close, you saw the earnings trade I put on for $NVDA using options.

If you didn't watch us live, then you missed the trade, and it's too late now. No biggie. You can skip the rest of the note.

If you did watch, and either you're watching from the sidelines and interested in how it plays out, or you did take the trade, read on. We'll discuss how I'm going to handle the exit tomorrow morning.

As a reminder, this afternoon, we put on a put ratio spread (1 x 2) in $NVDA Aug 30 (weekly) options. We sold short one 125 put and purchased two 115 puts for a net credit of $1.15, right at the last minute before the closing bell.

The PnL graph of this trade looks like this: