For this week's trade, we're selling an $XLI May 97/105 Strangle for approximately $2.85 net credit. This means we're naked short both the 97 puts and the 105 calls.
Get the full details, risk management procedures and targets for this trade here:
The Outperformers is our newest scan that pinpoints the very best stocks in the market. It’s the fastest, easiest way to find quality names that are primed for major moves.
The goal is that as the market rally progresses, the sector rotation within the market will reflect in this scan. So while our Top/Down Analysis helps us with the broader view of the market, this Bottom/Up scan makes sure that we catch the slightest change in sentiment.
When investing in the stock market, we always want to approach it as a market of stocks.
Regardless of the environment, there are always stocks showing leadership and trending higher.
We may have to look harder to identify them depending on current market conditions… but there are always stocks that are going up.
The same can be said for weak stocks. Regardless of the environment, there are always stocks that are going down, too.
We already have multiple scans focusing on stocks making all-time highs, such as Hall of Famers, Minor Leaguers, and the 2 to 100 Club. We filter these universes for stocks that are exhibiting the best momentum and relative strength characteristics.
Clearly, we spend a lot of time identifying and writing about leading stocks every week, via multiple reports.
Now, we're also highlighting lagging stocks on a recurring basis.
One of the overarching themes since we launched the Inside Scoop and began writing about The Hot List each day has been the relentless interest in commodity stocks.
Coincidentally, these same stocks have exhibited incredible relative strength over this time period. It’s already been a few months, but we’re not seeing any signs of this trend slowing down.
We discussed a lot of these names during last week’s live strategy session. Click here to watch the replay and to download the accompanying chartbook.
And be sure to join us tomorrow at 1:00 p.m. ET for this week’s live strategy session.
Today, we’re going to talk about some new long setups that we’re getting involved with.
We had a feeling this one would be fun to watch unfold...
After just 24 hours of speculation and buzz about Elon Musk becoming the largest shareholder of Twitter, we already have some important follow-up news.
In an 8-K filed around 8:30 a.m. ET today, Twitter reported that Musk has been appointed to a board seat.
The only significant information in the filing is that Musk is restricted from becoming a beneficial owner of more than 14.9% of outstanding shares during the time he serves as a director (and 90 days thereafter).
Whether he already owns the 14.9% now or not is unknown. We should find out soon in a 13D and/or a Form 4 filing in the coming days.
Stay tuned. There’s going to be more to come on this one.
This is one of our favorite bottom-up scans: Follow the Flow.
In this note, we simply create a universe of stocks that experienced the most unusual options activity — either bullish or bearish, but NOT both.
We utilize options experts, both internally and through our partnership with The TradeXchange. Then, we dig through the level 2 details and do all the work upfront for our clients.
Our goal is to isolate only those options market splashes that represent levered and high-conviction, directional bets.
We also weed out hedging activity and ensure there are no offsetting trades that either neutralize or cap the risk on these unusual options trades.
Welcome back to our latest Under the Hood column, where we'll cover all the action for the week ended April 1, 2022. This report is published bi-weekly and rotated with our Minor Leaguers column.
What we do here is analyze the most popular stocks during the week and find opportunities to either join in and ride these momentum names higher, or fade the crowd and bet against them.
We use a variety of sources to generate the list of most popular names.
There are so many new data sources available that all we need to do is organize and curate them in a way that shows us exactly what we want: a list of stocks that are seeing an unusual increase in investor interest.