It wouldn’t shock me to see the markets pull back 2-3% or so here, if only to re-embolden the shorts but not quite give the underinvested longs a chance to get long. Then we rally right on into new all-time highs in the $DJIA and $SPX? Or, another thought — whatever happened to sideways market […]
Trade Alert: An options trade in Fitbit
Let’s talk about the small options trade I’m making. I’m going to buy some longer-dated FitBit $FIT call options. I’m going to take a small amount of capital and buy some Fitbit call options that expire out in June with strike prices around $17-18. What’s really impressive about those $FIT Alta and Blaze numbers is […]
Trade Alert: Apple trim and Spy puts
Part of the recent strong stock market action is most easily described as momentum. Momentum moves, both rallies and sell-offs, can last longer and go further than you ever think possible,. a large contingent of money managers that are underperforming the markets this year and they are hoping for a pullback. Meanwhile, the shorts didn’t […]
Trade Alert: Taking some profits on Sony, adding a small tranche hedge
Markets trading flattish this morning. Maybe it’s time for a flat market for a few days or weeks? The action has been so volatile for the last year…maybe it’s time for some churn. At any rate, I’m writing up a lot of analysis about the current short-term and long-term set up for the economy and […]
Cody Kiss & Tell: Trump, Sanders, Clinton, Gold Miners, Options Strategies & More
Here is the transcript to this week’s Live Q&A Chat. Visit the Trading With Cody Chat room on the Trading With Cody iPhone App, the Trading With Cody Android App or at https://twc.scutify.com/members/. If you have any questions about our service, just email us at support@tradingwithcody.com. Q. What do you think are the chances of a Sanders or Trump […]
Trade Alert: Puts on a new name and taking profits elsewhere
Time to lock in some more profits on our Netflix and Amazon call options that we’d bought right near the bottom back a month ago today (See Trade Alert: Panicky action, buying call options and Trade Alert: More NFLX and AMZN options). I didn’t catch the exact bottom in those stocks for the buy and I’m not catching […]
Trade Alert: More profits from NFLX and AMZN calls
If you were freaking out and/or panicky at last Wednesday’s lows when the Dow Jones Industrial Average (DJIA) was at 15,500 and the S&P 500 was at new 2 year lows — now is the time to lighten up a little bit. If you were panicking last Wednesday and wanted to go to cash when […]
Trade Alert: AMZN profits, Zen, best brokers and more
The markets just barely broke through the two year lows on the S&P 500 yesterday upon which time they immediately had a big bounce into the close and that rally continues today. We don’t have to catch the exact bottom in the markets even as we stealthily look for great pitches like we had last Friday […]
Trade Alert: Fed speaks, markets rally, we trim calls
I am in Dallas for the CFA event, to which I was invited by a reader of mine with whom I had been trading emails for more than ten years. I am very excited about moderating a panel with Jeremy Siegel, Professor, Wharton School, University of Pennsylvania, William H. Eigen, Chief Investment Officer, J.P. Morgan […]
Trade Alert – Partial profits on KNDI puts PLUS Chat Room
As I mention below, I’ve raised cash, reduced the size of our longs, cut our number of longs in half and put on some more shorts in the last year. I certainly wish I’d gone almost all to cash and loaded up on shorts back when I wrote “The Great Corporate Debt Bubble“, but I […]
Trade Alert: Locking in profits from last week’s options buys
Stocks up early. Oil +7% to almost $35. I’d mentioned I’d bought some $UA and $FB earnings into those panicky lows last Wednesday and both of those companies reported blowout earnings. We caught both of the two largest movers in the earnings reports today with our call options that we bought when the $DJIA was down -550 at last Wednesday. Under […]
Trade Alert: Economic analysis, stock market set-up, shorting IBB
In the Trading With Cody Chat Room this weekend, @jakef1111 wrote to me: “Your mindset doesn’t seem the same as when you were as bullish and shrugging off crisis after crisis like Greece, Cyprus, EU, Middle East tension, Russia/Ukraine etc… Do you see us having another leg down? Are you still positive on the year?” He’s exactly […]
Cody’s Trades of the Week for January 18-22, 2016
TRADES FOR THE WEEK OF JANUARY 18-22, 2016 On Tuesday, January 19th, I sold a couple of shares to raise yet more cash: $SIMO-Silicon Motion: I removed the remainder of this position. $SYNA-Synaptics: I removed the remainder of this position. On Wednesday, January 20th, I used a tiny bit of capital, less than 1% of […]
Trade Alert: Doing some buying as the bulls panic
I’ve been saying we probably need a down -800 day on the $DJIA to wash out this market. That said, looking at the carnage out there, I sense there’s some panic in the air today already. Finally. Here’s a sampling of random names getting killed this morning: Clearly I should have been just bearish and short […]
Trade Alert: AAPL options, FFIV, and reviewing the playbook
Well, many stocks, including (especially?) technology stocks have been smashed in the last few days. Let’s look at some charts for some perspective. Looking back over the last, say, three months, you can see that some of our biggest long positions have been up nicely, while I’ve also unfortunately ridden some losers lower: Our shorts, […]
Trade Alert: Tranche buy, FIT secondary, AMAT earnings and more
First off, I’m adding another tranche of FFIV while it’s down today at near 52-week lows. The company is becoming an increasingly important player in the network security industry and has refreshed updates in its product lines about to hit in 2016 which should really drive growth in 2017 after their customers test out and […]
Trade Alert: Four tranche buys, two trims
I’m going to make a few trades here today. Remember when the DJIA was down 1000 and hit its August lows and I wrote: Just scale into some more long exposure while others are panicking. That’s exactly what I’ll be doing this morning as I nibble on some of my highest rated stocks. I’m not […]
Trade Alert: Trimming some FIT and Cody Kiss & Tell Chat Transcript
Here’s the transcript from this week’s Live Q&A Chat. And Fitbit now up 30% from where I bought more of it just five trading days ago. I’m going to trim 1/10th of my $FIT position, locking in some profits on that big of a move. Q. Good morning/afternoon, Cody. On the possible theory that he who […]
Trade Alert (Removing Three Longs) and Latest Positions
As you’ll see below, I went through and made notes of my latest analysis about each of our positions. I’m removing three positions from the portfolio. I’m selling Palo Alto Networks and Splunk and Iconix. Details in the notes below. Every few weeks I sit down and go through my entire portfolio and rank each […]
Trade Alert: Airing out the portfolio
One of the biggest pitfalls for most investors and traders is that they sell their winners and keep their losers. Similarly, another big pitfall for most investors and traders is holding onto legacy positions simply because they’ve owned them for a while and end up growing complacent. We are not most investors and traders and, […]