Wednesday February 19th, Trading Day: Wrap Up

Stocks climbed out of the hole that had been dug overnight and rallied to print a record high on the $SPY. They then proceeded to sell off in rapid fashion, with the sell-off gaining momentum near the close. The $183 level on the $SPY held, so could this be the start of another wicked sell off?  Has the $SPY double topped and are we looking at lower prices from here on out?

I don't think so.

If anything is ready to fall, in my opinion, it's bonds and my $TLT puts are starting to look better as the week progresses.

$GRMN - What a nice way to start the trading day. Someone asked today in the chat room: "When did I mentioned $GRMN?" I talked about the stock just this last Monday night in the live webinar and I sent out a private tweet about the $47 calls I bought. I also posted the trade in the chat room and I wrote a piece about the stock yesterday during the trading session. The private twitter feed is a great place to find trades I make, because I post trades in there and with an occasional link or opinion.

$FCX posted the $33.5 puts I entered into at $.15. A few hours before the close, they closed at $.44 for a +194.57%. We could see further weakness as precious metals take a breather.

$BTH is consolidating at the $10 level and it looks ripe for a move over $11 and then $12.5 over the next few weeks. I like the MAR $10 calls and bought a few at $1, and I'm looking to add a few more if the price dips further.

$MRVL, I got into the $15.50 calls today. It is a high-risk trade, and they have earnings tomorrow night. If $MRVL sees a nice premium build tomorrow I may sell all, take my profits and run.  We'll see how it goes, and I'll let you know if I sell.

$TSLA is ripping higher after hours, hitting over $224. At present, it's settled around $216. It's a tough one to be buying OTM calls or puts into earnings, but tomorrow may offer an opportunity to make a quick profitable trade.

$BIG was upgraded yesterday and looks strong for a move back to $30. My February options are not looking good right here, however I think this is a case of being early to the party.

$FIVE took a dive today as well, proving that timing is everything with options. And while both of these stocks will snap higher, I was off with my timing.

We have earnings tomorrow from $PCLN, $MRVL and others. With today's volatile action in the market it should be a great day to swing some option trades.

Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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