Daily Recap 5/21/15

Today was a more exiting day for the market bulls. Last night futures were down 6 handles and came back roaring today closing up 5 pts. It was an exciting day for tech as BABA and AMZN stole the show. BABA was the real winner as it went up around $3.50 today.

AMZN had a nice gap up after an upgrade. AAPL also had a nice move closing up 1% on the day, but failing at 131.50 resistance. Look for it to test 132.5 then 133. I suspect we will touch those levels before heading back down. I will continue to hold my call fly until either we touch and hold 135 or break below 1225. I still feel confident in the trade.

My Bidu 200 calls from yesterday closed at $1.20 from $.25. Good for a 5 bagger. Unfortunately I sold ¾ of them for only a 50% gain But I am holding the last quarter overnight. I expect the market to rally tomorrow, but think we will come under pressure next week. I continue to expect very low volume. For those looking to trade the SPY I think a short around 214 offers a good r/r. I will reiterate that there is not much going on in the market for the next few weeks so when everything looks great like it does now try not to get fooled and go all out and buy a ton of calls because the major theme this year has been failed breakouts and breakdowns. The IV Is very low as seen by the VXX dropping and the VIX at 13, so the odds of a big move for big cap names is relatively small. There will be a few outsized moves like there was in BABA, but I expect a boring market mostly for the next few weeks (or until the VIX jumps).

Max Ganik (Maxzak) is a 19-year-old stock and option trader. As of June 2016, Max has been a member of Option Millionaires for over 3 years, and has been a contributor for over 2 years. Max regularly writes blogs for Option Millionaires and has also presented webinars.

Max is the founder of Ganik Market Strategies. He is a member of the Leaders Investment Club. Max has been interviewed by the New York Times, CNBC, and Bloomberg TV. He was also the first high school member of the New York Society of Security Analysts. Max is currently a member of the University of Michigan's premier investment club, Michigan Interactive Investments.

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2 thoughts on “Daily Recap 5/21/15”

    1. Thanks UPB! I think a lot of these stocks are going to have big moves but if you notice it’s been happening in the beaten up names (bidu, baba, possibly Lnkd) I think names like Nflx and Amzn don’t have much of a push left. AAPL is a wildcard. Volume has been low so hard to know if it’s sustainable. Have a good night!

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