Weekly Review NOV 3, 2024

How was your weekend? Do anything fun? Mine wasn’t bad. Helped a lady from my church, single mom, grade school teacher, they needed help planting some trees. I dug holes, lots of holes…..

A few really big name stocks dug themselves into their own holes this week with unexpected earnings misses

We had not one but two absolute Grand Slams with Options in the way of GRMN and SFM
With GRMN we had a 538% return which I shared the screenshot of the day after earnings
SFM wowwwwwwww, what an absolute beast………………………………….
If you are new here welcome, and thank you for joining us
We first entered SFM at the beginning of MAY 2024 after a big earnings beat it had back then
It’s almost doubled in price since then

Our main focus here at the optionscoach.net is strength
We could care less about any articles, stories, who bought what, or blah blah blah

~~~A stock either proves itself in the way of price movement, or it does not~~~

When it comes to stock investing that is what separates the winners, from the losers
It is that black and white, it is that clear cut, any further discussion about that would be unnecessary. Do you go to or watch football, baseball or basketball games? Are both teams victorious at the end? Ever watch a car race? Do all 40 cars cross the finish line all together at once, in unison?
Just like in sports, stock investing has winners and losers. Stocks either make money, or they don’t

~~~There is only Do, or Do Not, there is no try~~~
~~~Yoda~~~

This week I shared that it was time for a “rebalance” with our Model Portfolio
What a rebalance does is lose the weak and keep focus on the strong
We are going to keep one of the S+P 500 ETF’s in as our market barometer
Ticker symbol SPY. SPY trades at one / tenth the cost of the actual S+P
The barometer is just that, but can be used as an investment itself
When markets are strong adding an index never hurts

Here’s our new Model Portfolio
1st: SFM Surprised? Have you seen it’s UP trend?
2nd: GRMN We are now adding this in officially. The fact it beat by 27% and has had very very little in the way of profit taking demonstrates more strength to come
3rd: HD This is a name that we have played on and off, here and there, a time or two. We like it here at this level. It’s now finishing up a one year Cup w Handle pattern and is sitting on the 50 SMA. A bounce off of this is a go
4th: FIS. We first spoke about this one back on SEPT 8, 2024. It’s officially in now
5th: AMZN, yes AMZN is staying with us, it might be a bit of a “Hail O Mary” but for now lets see. We like how it beat earnings. It still needs to get up above that $200.00 mark. If it holds here and the market remains strong, we could see it heading up to 210 in no time

By now I’m sure you noticed some of our past winners are out
We don’t marry stocks, we take them out for coffee and if it isn’t there we move on
NVDA is now officially going into the DOW. That should help it’s cause on Monday morning. It seriously needs to break up above $140.00 AND STAY UP ABOVE IT to offer investors any sense of security
GE, struggling to find its footing
META, they are in need of damage control to say the least, 550 is still the price target for now
CAT, it was good while it lasted, and we thank it for those monster returns we had on it
Our Options started with $11,632.00 and ended way north of $50,000.00
GEO? Our options ended up gaining over a 970% return
But that was then, this is now

We have other stocks that are on standby. Should something happen with one or any of our Top 5, it or they will be replaced by the strongest on the standby list

As far as Options are concerned here is how they currently rank by strength
1st: AMZN
2nd: HD
3rd: GRMN
4th: FIS
5th: SFM

Please remember that I’m going off of my 17 point checklist, not just one or two publicly listed numbers or anything else, but rather an entire conglomerate of Options metrics. And as a courtesy reminder with Options, just as with stocks, we don’t buy to the long side if it’s down for the day

For now lets look at possible plays with AMZN
The first ones offer downside protection in the way of Bull Call Spreads
If an investor was bullish they could buy the DEC 6, 2024 200 Call and then sell the 210
More conservative investors could consider selling the 205 instead of the 210

If an investor was highly skilled, and is willing to take on risk with ZERO protection to the downside they could buy the DEC 6, 2024 Call at the MID being 6.10
Those calls have an O.I. of 2,110
I.V. at 27%
And Deltas of 0.48
On our 1-5 Risk Scale this trade is a 5

Get some rest team, tomorrow is another day

The Options Coach