The Cats Meow

Once again, ( anyone keeping count? ) congrats to the DOW for closing at a new ATH
Ohhh, and the Russell 2,000 did too

You know who didn’t? NVDA
We aren’t “hating on it” over here, we are simply being non objective which allows us to be profitable investors
I share that because all day today, every where you looked that was talk of the town. NVDA isn’t dead, it’s not going anywhere, but the money has rotated out of growth and into value stocks, that is why stocks like CAT got such a boost today. CAT is not new to readers of theoptionscoach.net , not at all
Lets talk about its new trade in a second

First let me share with you one of the greatest trading lessons I ever learned
Years ago I was at a trading convention, there were multiple big name traders there selling their systems, indicators, and everything else under the sun
For about 10 minutes in a hall way I got to have a direct one on one with one of the speakers. I shared my dilemma with him, rather than try to sell me his system or anything else he asked if he could ask me a question
After that he had a challenge for me
His “challenge” for me was to remove all of the names off of all of the stocks I had and trade them by the charts price action only. No stories, no news articles, no research, nothing. Just the charts with no names on them
I did it, and that was hands down one of the 3 biggest game changers in my investing journey. After that I saw the charts differently for sure
The research had already been done to find the stocks, now that I was in them allowing my thoughts to be convoluted by any news would be counter productive
Price action pays, the rest is just talk
Right now you are going to hear, and you may even be one of those people, that NVDA will do this, that or the other because of X, Y or Z…….
Not just NVDA, but stocks that are going against the ones who bought and are not making money. That’s not just today, that happens every day

A few traders reached out to me today, one to speak about just that, and you know what? He is right. We can’t change the course of any stock or underlying, only what we do, act or react

And reacting we are
CAT is in another funky area when it comes to Options
Currently it’s in the $405.00 range and guess what? It bypasses the the 405’s by going from 400 straight to 410… Okay, no worries, we did this dance last time
We added more today

JAN 17, 2024 seems to be the best plays on it right now, so all of these are for that date
If an investor is bullish that this uptrend will continue then they could place Bull Call Spreads for the:
400 / 410 going for 5.78 at the MID ( ultra conservative )
410 / 420 going for 5.43 at the MID ( conservative )
For those wanting additional exposure and willing to go with ZERO DOWNSIDE PROTECTION the Blind Calls at the 410 strike are going for 13.85 at the MID
I looked at the 400’s since price is in between at the moment, yes the 400’s have a stronger O.I. but dangggg they are pricey in comparison

We still like COST, up above $950.00 and we are fans, currently its hovering $960.00
HD is with us here pumping out a great day
SFM come on, keep creeping on up there!!! $150.00 here we come!!!!
META, lets not take our eyes off of that one

This week has started off stronger than expected seeing it’s a short holiday week
Lets see if it continues
Tomorrow is another day

The Options Coach