Rocket Trading Update - December 21, 2020
Monday Update - Markets Bouncing Off the Morning Lows - 12/21/20
As we approach Noon EST we have the S&P futures negative about 50 points, yet it has clawed back more than half its losses from where it was at just 6 AM EST this morning.
We have UBER trading dramatically higher so far during the session, as food delivery gets a bid in light of the possibility of harsher lock down restrictions until the vaccine becomes readily available.
All the markets have popped quite a bit from the early lows, we'll see if we can hold. Europe is down much larger than we are right now; The DAX in Germany is down 2.75% right now, where as our S&P is down 1.2%, the Nasdaq is down 0.95%, and the DJIA is down just 0.5%.
The VIX said it all this morning when it jumped to almost 32 as the market sold off. There is a lot of fear in this market that we are teetering on the edge of a harsh correction as we come into the end of 2020 and the start of trading in 2021.
We are selling another cash-secured-put in CRM, this one will expire at the end of trading on Thursday's half-day, as markets are closed Friday.
Sell a Dec 24th $220 CRM Put for about a $0.75 credit. We collect the premium and move on if CRM stays above that level. If we make it back there and close below $220 on Thursday then we will take assignment of the equity, so make sure you have the capital for a cash-secured-put if making this trade. We would be obligated to purchase 100 shares of CRM at $220, which is about $22k. $0.75 doesn't sound like much, but you can see that this is now the 4th time we will make this trade in as many weeks and they all add up. CRM is trading at $226.50.
We still have some earnings this week. with Carnival, Carmax, Cintas, and Paychex out before we leave for the Christmas Holiday.
Stay tuned for updates!
We have UBER trading dramatically higher so far during the session, as food delivery gets a bid in light of the possibility of harsher lock down restrictions until the vaccine becomes readily available.
All the markets have popped quite a bit from the early lows, we'll see if we can hold. Europe is down much larger than we are right now; The DAX in Germany is down 2.75% right now, where as our S&P is down 1.2%, the Nasdaq is down 0.95%, and the DJIA is down just 0.5%.
The VIX said it all this morning when it jumped to almost 32 as the market sold off. There is a lot of fear in this market that we are teetering on the edge of a harsh correction as we come into the end of 2020 and the start of trading in 2021.
We are selling another cash-secured-put in CRM, this one will expire at the end of trading on Thursday's half-day, as markets are closed Friday.
Sell a Dec 24th $220 CRM Put for about a $0.75 credit. We collect the premium and move on if CRM stays above that level. If we make it back there and close below $220 on Thursday then we will take assignment of the equity, so make sure you have the capital for a cash-secured-put if making this trade. We would be obligated to purchase 100 shares of CRM at $220, which is about $22k. $0.75 doesn't sound like much, but you can see that this is now the 4th time we will make this trade in as many weeks and they all add up. CRM is trading at $226.50.
We still have some earnings this week. with Carnival, Carmax, Cintas, and Paychex out before we leave for the Christmas Holiday.
Stay tuned for updates!
Options Trades:
None
Short Term portfolio:
None active
Long Term portfolio:
Sell a Dec 24th CRM $220 put for about a credit of $0.75. This should be a cash-secured-put, meaning you have the cash to buy 100 shares of CRM if we are assigned, which we will then keep in our long term portfolio as a new position. CRM is trading at $226.50.
Long half position in DIS at $118.63. Disney is trading at $170.90. Stop is $98.45.
Long half position in UBER at $31.50. Uber is trading at $51.45. Stop is $26.24.
Long half position in MCD at $216.91. MCD is trading at $211.41. Stop is $189.50.
None
Short Term portfolio:
None active
Long Term portfolio:
Sell a Dec 24th CRM $220 put for about a credit of $0.75. This should be a cash-secured-put, meaning you have the cash to buy 100 shares of CRM if we are assigned, which we will then keep in our long term portfolio as a new position. CRM is trading at $226.50.
Long half position in DIS at $118.63. Disney is trading at $170.90. Stop is $98.45.
Long half position in UBER at $31.50. Uber is trading at $51.45. Stop is $26.24.
Long half position in MCD at $216.91. MCD is trading at $211.41. Stop is $189.50.
Timer Digest Signals: S&P: Bearish Gold: Bullish Bonds: Bullish
Disclaimer: Trading in securities such as stocks, options, indexes, currencies, and futures involve risk and should not be undertaken without due diligence and serious independent study. Options, stocks, currencies and futures trading, involve substantial risk. Subscribers may carry out their trading based on what they learn from “Rocket Equities & Options” however all risks of potential financial losses are the customer’s responsibility. TFNN, Corp. will be in no way liable for financial losses resulting from trading decisions based on this newsletter. Past performance is no guarantee of future results. Reproduction in whole, or in part, is not permitted without prior written consent. Copyright 2020 all rights reserved.