April 1, 2024
As I noted last week, this is a shortened version of the normal Monday Weekly Review as the Mintz family just got back home late last night from a short Spring Break trip. I am back at the trading desk today, and all Cabot Options-related services will run as normal this week.
With that in mind, here is where we stand with our open positions …
Celsius (CELH) July 60 Call – CELH fell 9% last week following news that Celsius reworked the company’s deal with Pepsi (PEP). The analyst community defended the deal, but for now at least the stock is under pressure.
Freeport-McMoRan (FCX) November 46 Calls – FCX is the newest addition to the portfolio, and the good news is the stock looks great, and option activity was very strong to close last week, including these trades:
Buyer of 11,000 Freeport-McMoRan (FCX) May 48/55 Bull Call Spread for $1.40 — Stock at 46.75
Buyer of 10,000 Freeport-McMoRan (FCX) May 50 Calls for $1.50 — Stock at 47.
Robinhood (HOOD) January 15 Call – HOOD broke out to a new high last week following several positive company-related news items. Essentially, the news is good, the stock looks great, and option activity remains red hot.
Our January 15 calls are now at a potential profit of approximately 180%.
Novo Nordisk (NVO) September 135 Calls – NVO mostly chopped around last week, which is “fine.” That being said, clearly we would like for the stock to get back in gear and to its recent highs.
Palantir (PLTR) April 19 Call – PLTR looks like many recent leaders: fine, but also sagging a bit. This recent pullback feels normal, but is not what we want for our deep in-the-money calls that are starting to run out of time.
Permian Resources (PR) April 15 Covered Call – PR looks terrific and we now have $2.50 of room to the downside before our position would have any issues. This trade is working very well.
Equal Weight ETF (RSP) June 158 Calls – While stocks like CELH/PLTR/TSM have pulled back as of late, the rest of the market has accelerated to the upside, which is great for our RSP calls that are now at a potential profit of approximately 90%.
Snap (SNAP) August 17 Calls – SNAP continues to chop around aimlessly. Not much more to add other than the stock occasionally attracts very strong option activity (though for now those call buys have not worked).
Taiwan Semiconductor (TSM) September 130 Calls – After an explosive move higher three weeks ago, TSM has mostly traded sideways and has lost its momentum, at least in the short term. This is similar to most AI/Semiconductor plays. Our calls are still in terrific shape.
Nasdaq ETF (QQQ) November 430 Puts – The QQQs mostly chopped around last week, and we will continue to hold our puts as a portfolio hedge (that we hope doesn’t pay off).
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