December 30, 2024
Weekly Update
This week and next week’s Monday morning Week in Review will be focused on position updates so that I can spend the last two weekends of the year with my family. Then starting the week of January 6th, it’s back to full blast for the Cabot Options Trader and Cabot Options Trader Pro service.
Let’s dive into the position updates … and I do want to note we set/raised four stops on Friday, which isn’t an attempt to sell these positions, but instead to protect our gains on trades that are running out of time, while at the same time not limiting their upside.
Robinhood (HOOD) January 15/26 Bull Call Spread – With time running out on our January calls, I raised our stop to $22, which would trigger should HOOD stock fall to 37 (closed Friday at 39).
Regardless, our position is now almost at its full potential profit as the January 26 call is almost worthless.
Corning (GLW) May 47 Calls – GLW rallied 2% last week and continues to look solid. Also of note, option activity remains bullish in the stock.
Marijuana ETF (MSOS) – We are definitely going to sell our MSOS stock today/tomorrow to take the tax loss as this stock cannot get going … though of note, we may revisit this trade at some point next year.
On Holding (ONON) January 42.5 Calls – With time running out on our January calls I set our stop at $10, which would trigger should ONON stock fall to 52.5 (closed Friday at 55.3).
Regardless, our position is now at a potential profit of 100% and looks good.
Oracle (ORCL) March 160/240 Bull Call Spread – ORCL rallied marginally last week and continues to chop around since its earnings decline three weeks ago. Our position is now at a potential profit of approximately 25%.
Palantir (PLTR) January 26/45 Bull Call Spread – With time running out on our January calls, I raised our stop to $47.5, which would trigger should PLTR stock fall to 73.5 (closed Friday at 79).
Regardless, our position is now almost at its full profit potential as the January 45 call is virtually worthless.
Also of note, option activity remains red-hot in PLTR including these call buys last week:
Friday - Buyer of 3,000 Palantir (PLTR) January 90 Calls for $1.39 – Stock at 78.75
Tuesday - Buyer of 6,000 Palantir (PLTR) January 100 Calls for $1.20 – Stock at 83
Occidental Petroleum (OXY) March 52.5 Calls – OXY had a nice week coming off the news that Warren Buffett has been buying, and interestingly call buying was VERY strong last week, including this trade from Monday:
Buyer of 3,000 Occidental Petroleum (OXY) January 48 Calls (exp. 1/10) for $1.18 – Stock at 48
Rocket (RKT) March 20 Calls – While PLTR/HOOD/WMT and others were great trades by me in 2024, RKT was AWFUL as the bond market moves since the Fed rate cuts caught me, and many traders totally by surprise. Just so bad, GRRRR.
Walmart (WMT) January 65/95 Bull Call Spread – With time running out on our January calls, our stop remains at $25, which would trigger should WMT stock fall to 90 (closed Friday at 91.5).
Regardless, our position is now at a potential profit of 500% and looks good but has been losing steam as of late.
Financials ETF (XLF) June 50 Calls – The XLF gained 2.25% last week and is improving again after the nasty breadth sell-off that weighted on the Financials and most of the market the past three weeks. I like our position should the market continue to improve.
Jets ETF (JETS) January 26 Calls (exp. 2026) – The JETS look great closing just short of its highs on Friday. I like this position a lot if the market continues to move higher in 2025.
Sofi (SOFI) July 16 Calls – As expected, SOFI stock is nuts as it moves violently day to day. Regardless, the stock looks good, and option activity is WILDLY bullish, including this trade from Friday.
Friday - Buyer of 12,000 Sofi (SOFI) January 16 Calls (exp. 1/3) for $0.46 – Stock at 16
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