Rocket Equities & Options Report 12-28-20
Rocket Equities & Options Report - December 28, 2020
Markets traded higher today with the S&P closing up 32.30 points at 3,735.36.
We should see light markets this week before normal action resumes again one week from today. Light means low volume, but does not necessarily mean low volatility.
It's remarkable that we are currently almost 500 S&P points positive for 2020. We closed out 2019 at 3,236 in the ES Futures. We traded to 3,732 today. The S&P is up about 15% so far this year. The Dow is up more than 6% this year, while the Nasdaq is up almost 44%. Stay tuned for updates this week, we have some trades we're looking at as we come into 2021. All the markets traded to all-time highs intraday today.
We should see light markets this week before normal action resumes again one week from today. Light means low volume, but does not necessarily mean low volatility.
It's remarkable that we are currently almost 500 S&P points positive for 2020. We closed out 2019 at 3,236 in the ES Futures. We traded to 3,732 today. The S&P is up about 15% so far this year. The Dow is up more than 6% this year, while the Nasdaq is up almost 44%. Stay tuned for updates this week, we have some trades we're looking at as we come into 2021. All the markets traded to all-time highs intraday today.
This morning we sold a Jan 8th $217.50 cash secured put in CRM for a $2.40 credit. CRM is a solid Dow company and has pulled back to support. We may see a consolidation between the $220 and $240 range. If we get assigned the stock then we have an effective entry price of about $215.10, which is a 4.2% discount to the current trading price of $224.64.
Disney traded to all-time highs today. The next stop for this stock is $200. I made a video for subscribers on Christmas Eve. It's worth watching if you haven't yet. Disney could have much higher to go once travel and mass gatherings get back to normal hopefully within the next year. Click here to access the subscriber video update from Christmas Eve - I start talking about Disney at 3:44 into the video.
Uber continues to consolidate between $48 and $55.
McDonalds is in the middle of its consolidation area between $208 and $220. We want to see it get back above this range.
VIX still above 20 yet trending toward ending the year near the lows since March.
Zoom Video is one company I find myself looking at at this level. The fall from $588 has been quick, but it's pulled back to an area of support and we're keeping it on our radar for a potential short or long term position. The last time it made it near this area to $366 in November it was at almost $500 by the end of that month, and yet it's given that all back and then some before the end of the year. Anytime a company's name becomes a commonly accepted verb in the English language, that's something I keep my eye on. It's a volatile stock but they make money, and even post-covid they have a bright future.
Options Trades:
None
Short Term portfolio:
None active
Long Term portfolio:
We sold a Jan 8th CRM $217.50 put for a credit of $2.40. This 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 $224.64.
Long half position in DIS at $118.63. Disney is trading at $178.86. Stop is $98.45.
Long half position in UBER at $31.50. Uber is trading at $51.97. Stop is $26.24.
Long half position in MCD at $216.91. MCD is trading at $214.02. Stop is $189.50.
None
Short Term portfolio:
None active
Long Term portfolio:
We sold a Jan 8th CRM $217.50 put for a credit of $2.40. This 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 $224.64.
Long half position in DIS at $118.63. Disney is trading at $178.86. Stop is $98.45.
Long half position in UBER at $31.50. Uber is trading at $51.97. Stop is $26.24.
Long half position in MCD at $216.91. MCD is trading at $214.02. Stop is $189.50.
Timer Digest Signals: S&P: Bearish Gold: Bullish Bonds: Bullish
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