Rocket Equities & Options Report 01-12-21
Rocket Update January 12, 2021
The SPY is almost flat right now at $378.53. We have some room to the upside with our SPY credit call spread and look for the SPY to stay under $384 by Friday. The methodology here is that you have a market that could be in a consolidation while it waits for the vaccine to get rolled out, and a VIX still sitting above 24 right now, which represents a higher premium priced in, which we will look to absorb.
Uber is making new all time highs today, up more than 7% on a deal they've announced with MRNA, along with news that they have been lobbying elected officials to be part of the vaccine roll-out assuring transportation is not an obstacle when people are trying to get vaccinated.
Disney and McDonald's are trading slightly lower, near the middle of their recent consolidations.
CRM is pulling back today. We sold a $217.50 put, which expires Friday for a credit of about $2.15. If we get assigned the equity then that would make our effective entry price $215.35. CRM is currently trading at $215.65. CRM traded as low as $214.47 and has bounced, we'll see where the rest of the day and week takes this stock. If you do get assigned the equity then place a stop at $193.64, which is about a 10% stop loss from our effective entry.
Uber is making new all time highs today, up more than 7% on a deal they've announced with MRNA, along with news that they have been lobbying elected officials to be part of the vaccine roll-out assuring transportation is not an obstacle when people are trying to get vaccinated.
Disney and McDonald's are trading slightly lower, near the middle of their recent consolidations.
CRM is pulling back today. We sold a $217.50 put, which expires Friday for a credit of about $2.15. If we get assigned the equity then that would make our effective entry price $215.35. CRM is currently trading at $215.65. CRM traded as low as $214.47 and has bounced, we'll see where the rest of the day and week takes this stock. If you do get assigned the equity then place a stop at $193.64, which is about a 10% stop loss from our effective entry.
Options Trades:
$384-$385 SPY Jan 15th Credit Call Spread for $0.27 credit (maximum $27 profit per contract). $0.73 ($73 per contract) risked if SPY closes above $385 Friday. This call spread is trading at about $0.16 right now. We make money as it moves toward $0 and expires worthless.
Short Term portfolio:
None active
Long Term portfolio:
Sold a Jan 15th CRM $217.50 Put for about a $2.15 credit. his should be a cash secured put, meaning you have the cash to buy 100 shares if assigned the equity, which we would then hold as a position in our long term equity portfolio. CRM is trading at $215.65. If you get assigned then place a stop at $193.64 for about a 10% stop loss.
Long half position in DIS at $118.63. Disney is trading at $175.75. Stop is $98.45.
Long half position in UBER at $31.50. Uber is trading at $58.46. Stop is $26.24.
Long half position in MCD at $216.91. MCD is trading at $211.55. Stop is $189.50.
$384-$385 SPY Jan 15th Credit Call Spread for $0.27 credit (maximum $27 profit per contract). $0.73 ($73 per contract) risked if SPY closes above $385 Friday. This call spread is trading at about $0.16 right now. We make money as it moves toward $0 and expires worthless.
Short Term portfolio:
None active
Long Term portfolio:
Sold a Jan 15th CRM $217.50 Put for about a $2.15 credit. his should be a cash secured put, meaning you have the cash to buy 100 shares if assigned the equity, which we would then hold as a position in our long term equity portfolio. CRM is trading at $215.65. If you get assigned then place a stop at $193.64 for about a 10% stop loss.
Long half position in DIS at $118.63. Disney is trading at $175.75. Stop is $98.45.
Long half position in UBER at $31.50. Uber is trading at $58.46. Stop is $26.24.
Long half position in MCD at $216.91. MCD is trading at $211.55. Stop is $189.50.
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