The Daily T&B Report February 8, 2018

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Linda Richard
4 years ago
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1 The Daily T&B Report February 8, 2018

2 Agenda Announcements What I did today Current market environment Unusual options activity / inside trading activity New trades ideas Current portfolio status

3 Announcements Get your game faces on! This is the time in the markets that can define you as a trader. The DOW is off 10% from the highs. It s one of the quickest descents in history. Pay no attention to the media. Focus on what we re suppose to do in these situations Take advantage of the volatility; accumulate long-term positions in markets that have been taken out behind the woodshed; focus capital in the vehicles that will generate the most profit for you in the shortest amount of time; take the heat and wait for the big rallies. The market s going a lot higher by the end of the year. Right now, today, this market action is a gift from God Almighty.

4 What I Did Today Sold the VXX short and bought ATM calls. I sold small positions at 46, 52 and a large position at 54.45

5 Per Trade Capital Allocation Per Trade Capital Allocation Per Trade Capital Allocation Low Volatility High Volatility Exceptional Opportunity Current VIX Reading: Market Environment VIX = 10s VIX = VIX = >25 Chipshots Trading Dream Fantasy Land RAP 5% RAP <1.5% RAP 5% ST TD <1.5% ST TD 3% - 5% ST TD 5% - 10% LT SP <1.5% LT SP 1.5% LT SP 1.5% A market that just continues melting up without any movement to the down side A market that transitions from a Low vol to Hi Vol and vice versa We are currently here A market that is in correction territory and where the VIX is above 25

6 Unusual Options & Insider Trading Activity 2/7/2018 ADI Aggressive buying of the MAR18 90 calls 2/7/2018 PG 6k of the FEB and 12k of the APR calls bot 2/7/2018 GILD 10k of the MAR18 85 calls bot 2/6/2018 HBI Aggressive call buying in the FEB18 21 calls 2/6/2018 APC 5k contracts of the MAY18 70 calls DATE SYMBOL TYPE Still Active? 1/12/2018 CRM Director buys 6000 shares Yes 1/12/2018 DVMT Michael Dell buys 13k ashare Yes 1/12/2018 PLAY Two directors bot 15k Yes 1/16/2018 More insiders selling today 1/19/2018 BLCM Baker Bros dumping BLCM Yes 1/25/2018 BGNE Baker Bros bot 1.98m shares at $101 a share Yes

7 All of our trades from this point forward will be addressed within the context of the Three Disciplines. Current Portfolio LEGEND: LT Spec = Long Term Speculative Plays ST TD Gains = Short Term Triple Digit RAP = Retirement Account Protection Retirement Account Protection Short Term Triple Digit Gains Long Term Speculative Plays The RAP protects retirement accounts by placing trades in volatility products and precious metals at key inflection points ST TD Gains focuses on penny stocks and options trades. The intent is to trade specific setups and entry techniques with the goal of scoring 25%- 100% returns as quickly as possible LT Spec Plays are longer-term opportunities. We look for a catalyst and a market that s been beaten down or a market that s at an extreme high and we are convinced it s going lower.

8 When the market makes another move down, these will be on our list. I ve included a target that I ll be shooting for when we structure the options trade Current Portfolio Long Term Spec Plays Currently stalking: PG 6-month trade structure // 90 will be the target AFL 6-month trade structure // 90 will be the target PYPL 6-month trade structure // 85 will be the target ADSK 1yr if possible trade structure // 130 is the target SGG 6-month trade structure // 32 is the target DUK 1-yr trade structure // 90 is the target Reasons Why We Have Current LT Spec Plays: Cannabis. Future catalyst over next 18 months Mining/Precious Metals. Belief---precious metals go higher ULTA. Cream of the crop retailer beaten down too far AGN. Insider activity SNY. Biotech/Pharma play MXIM. Potential takeover GE. Dog of the DOW Bottom Picker

9 Working Orders: (LT Spec Play) DUK. BUY 18JAN19 85/90 CALL DEBIT LMT // BUY THE 85 CALLS AND SELL THE 90 CALLS New Trade Ideas OUR FOCUS IS ON ESTABLISHING A VXX TRADE! Just get the trade on as soon as the market opens. Enter in tranches. If the market sells off more tomorrow evening buy more debit spreads. I m allocating Here are your courses of action: I. Buy a put debit spread in the APR18 expiry cycle. Buy the 42 puts and sell the 40 puts is my recommendation. II. Buy a put debit ratio spread. Stay in the APR18 expiry cycle. Use a 3/2 ratio. For every three-lot debit spreads (buying the 42 puts and selling the 40 puts) buy an additional two 42 put. You ll have to place two orders; buy the debit spread III. Sell the VXX short and buy an ATM call in the APR18 expiry cycle (my preferred method but it is more capital intense)

10 What We Need To Be Prepared For The BIG Plays. Major themes: NFLX higher & potential B/O target Precious metals (i.e. SLV) long term play Biotech catch-up Commodity plays OK, this is the Title territory.

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