Weekly Recap JAN 19, 2024

How was your weekend?
More importantly, how is “Polar Vortex 2025” treating you?
It’s cold here, really really cold…

Alright next question..
The NFL Playoffs are going on, is your team still in “The Hunt”?
Mine is!! #GOChiefs!!!!!

As the Kansas City Chiefs are marching towards their possible “Big Game 3 Peat” season ticket holders, as well as past season ticket holders, are all receiving a giant 20 minute survey from the consulting firm that the Chiefs hired ( Timing?? hmmmmnnn…. )
The subject? Do the Chiefs build a brand new stadium some where else, or stay put and upgrade?
The questionnaire offers you a chance to vote on everything from new seat designs ( 3 different choices ) to the concession stand layouts, to everything in between

In other words it’s::
“If we build it will you come???”
Or
“Should we stay or should we go???”

The market appears to be stabilizing, and our stocks have been rising
Do we go and look for new adds? Or build on the plays we already have?
Right now I can say that we are most interested in plays that we already have and are looking at adding some “side action” in the way of banks
The blowout earnings that they reported cannot be dismissed as we’re seeing what looks to be the start of fresh trends in the finance sector

With earnings season now starting we may see some new names come in as well as some old friends take a break. Part of our basic tenets here at theoptionscoach.net is to never hold losing positions

Always remember to check the earnings date prior to any new entries and assess if you wish to take the risk prior to earnings, holding trades through earnings carries substantial risk
We do not buy when a stock is red or on down days
Set STOPS and HONOR THEM

Here’s how our stocks did for the week

AMZN +3.20%
CAT +10%
COST +0.67%
SFM +0.92%
SN +1.16%

We added to CAT and COST both this week
Should they continue to advance we intend to add to both this coming week and are especially interested in COST as a swing trade
Any breaks south of the trend line would be cause to exit

All options mentioned today are for MAR 21, 2025

COST
Bull Call Spreads
945 / 950 are 4.92 at the MID
945 / 955 are 7.30 at the MID
Blind Calls
960 are 28.80 at the MID
Earnings MAR 6, 2025

AMZN
This one is on the teeter totter of maybe being rotated out
It needs to break it’s overall trend here to continue north
Bull Call Spreads
225 / 230 are 2.48 at the MID
225 / 235 are 4.65 at the MID
Blind Calls are 230 at the MID
Earnings is on MAR 21, 2025
AMZN SHOULD NOT BE HELD UNTIL THAT DATE BUT CLOSED PRIOR TO EARNINGS
What we are looking for here is a reversal and a push north

CAT
Bull Call Spreads
390 / 400 are 4.72 at the MID
390 / 410 are 8.25 at the MID
Blind Calls
390 are 15.70 at the MID
Earnings JAN 30, 2025
With earnings being so close we would not hold Blind Calls through that date
Bull Call Spreads have down side protection built in but still can experience losses

TSLA
Though it’s not officially one of ours at the moment no one can deny that it’s the “Wild Card” and anything can happen
Right now TSLA is showing more volatility and could jump either way very fast, north or south
Earnings are coming very soon, JAN 29, 2025
Here’s the “challenge”
First off IV is elevated, very elevated
Meaning any pullbacks and you will lose more faster
Secondly, the 435 Strike has some FUNKEEEEE Bid / Ask SIZE going on
Bid / Ask Price and
Bid / Ask Size, are not the same, they are different animals
IF, if, if an investor had a bullish view on TSLA
One of the more “reasonable” plays on it right now would obviously be Bull Call Spreads
430 / 435 are 2.17 at the MID
430 / 440 are 4.10 at the MID

SN We are seeing a good chance of a pullback here which would then offer us a fresh entry

SFN is on hold at this level

Banks
I’m making a list of all that we are interested in, it’s a big list
Don’t forget the markets are closed tomorrow JAN 20, 2025 for MLK Day, The Inauguration, The Polar Vortex, you name it….

The Options Coach