Wheeeeee!
How great is this? We flipped bearish on Wednesday’s poor Beige Book outlook (not to mention drought concerns and Hugh Hendry’s warning that “Bad things are going to happen“) and Thursday we noted it was looking a little too much like last July, where we fell off a cliff right after options expiration and my very appropriate comment at the end of Thursday morning’s post was:
Clack, clack, clack – like a roller coaster going up in the dark, we don’t know when we’ll get that big “wheeee” but we do know it’s coming!
Fortunately, we did not wait with our Long Put List going out in the Thursday Morning Alert to Members at 10:18, with all bearish trade ideas that included these gems:
- AMZN Oct $180 puts at $2.75, still $2.75 – even (all as of Friday’s close)
- CMG Sept $350 puts at $5, now $35 – up 600%
- DIA Dec $117 puts at $2.50, now $2.80 – up 12%
- ISRG Jan $350 puts at $1.70, now $5 – up 194%
- MA Jan $290 puts at $2.85, now $3.40 – up 19%
- SPY Oct $120 puts at $1, now $1.15 – up 15%
- V Jan $100 puts at $2, now $2.30 – up 15%
- XRT Jan $53 puts at $2, now $2.20 – up 10%
So a couple of big winners already and, of course, we’re done with those (see Stock World Weekly for more trade ideas) and the way we work our Long Put List is to take those winners off the table and utilize our “fresh horses” for the next leg down. Don’t worry, we won’t run out, there are 13 more picks on deck for our Members with AMZN (above) our top choice for this week (also featured with a slightly different trade in SWW).
Even our aggressive oil puts should be doing well in our small portfolios as well as our bullish VXX trade and, of course, our EDZ and TZA hedges as China dropped 600 points this morning and the Russell is testing our 775 target already. Things may be worse than we thought they were going to be as 775 may not hold on the RUT and that breakdown can lead us to test our -5% lines on the Russell (760), Nasdaq (2,850) and the…
