Pre-market Live and Options Picks for 12 30 2020

Good morning, traders. This is Jake from I’m looking over here [00:24]. I like to use MarketWatch. Let me refresh it real quick. We can see what’s going on. Then I check the headlines. I check just to see what the headlines are. It looks like Mitch McConnell blocked the Senate, or the House, or something on the $2,000 check that was supposed to go out for everybody.

Leaders, I’m looking at [00:53] the pre-market volume. It’s nice. Let’s take a look at MRNA. I look at [01:01] the laggers too. You never know. AES, not really going to bother my time with that. Then I go to most active. I’m not sure how they measure this, but most active for 12/30/2020.

Right away, I see TSLA. TSLA, I’m getting excited about. Might have to trade TSLA out of the gate and possibly MRNA. I don’t know. Oh, DBX, Intel, I’m seeing some interesting names on here [01:33] I never really see, DBX, Intel, NBA, okay. See, you never know. Thirty minutes before the market opens, look at this, look at that, look what I found.

DBX doesn’t look that great. What was the other one, MRNA? I haven’t even drawn any channel lines, or tribonaccis. You name it I’ve drawn it. MRNA, let’s go, MRNA. I like MRNA. It looks like we just didn’t get what I was waiting for. I’m not sure. Maybe there was a hidden pivot right here [02:47] that I missed as I go back to the historical charts. I was waiting for this [02:53] area to go along. Missed that yesterday and boom, straight to this resistance down.

What do they do? Gap it up. It’s easier to gap it up overnight than it is to grind up. I like MRNA for a long. This is something I’m going to be keeping an eye on. Next resistance is up here [03:19] at the 127.18. I think I’ll get to January 8 expirations and try not to get too far out of the money. Maybe right here could get the 118s, 188 call. See if we can get them to run a couple dollars into the money by next week.

I’m looking at [03:48] the 5-minute time frame, go out to the 15-minute time frame. Really, the 10-minute time frame is your happy middle ground. Actually, I will go to the 10-minute time frame. The 5-minute, the 10-minute, 15-minute, they’re all great. The day, the weekly, and sometimes the monthly, so look I see this [04:06] right away. It catches my eye. We’re out of that down channel.

Ultimately, I think that MRNA could go back to a $150 stock. It’s very realistic. Would have been nice to buy Monday here [04:40], but whatever, still get in. We’re day traders. We’re not some long-term value investing growth stock investors, which I don’t really recommend. To each their own.

I need to draw some new lines on TSLA. Pull this [05:09] out right about [05:12]. I’m going to zero this [05:17] out. That’s close enough. What is this 0:05:23? Yeah, 700 is the number. That’s the number. That’s the number TSLA wants if you ask me. We’ve got this high on TSLA right here [05:50].

You’ve been with me for a while now. Your trade, my trade, I don’t give a shit. Take profits when you have them. You don’t have to wait for me to post. I’m out. Some resistance here [06:13]. What a sharp pull back and push up. I remember this [06:17]. This was the craziest price action I think I’ve ever seen. People must have been buying puts down here [06:25] thinking it was going to crash. I remember that. This was insane price action right here [06:34]. People were buying puts down here [06:37] and just whoosh, or they were buying puts up here [06:43], were crazy in the money, didn’t sell, and lost, or broke even. Just amazing price action on TSLA.

Looks like we’re going to get maybe a little good buy opportunity on the 10-minute time frame. The other day, see [07:09] how it pushed up pre-market and then shot up towards this area? We could get something like that right out of the gate today with TSLA. Days like this with weekly expiration options, just it hurts. It just kills your premiums. You bought here, you’re in the money, and you’re red, and then you’re even, then you’re red, then you’re a little red.

It’s just this [07:36] sideways chopping action really kills your premiums on weekly expiration options. This little burst, you’re up 50, 70, 100, 150, 200% on your money, sell. Sell everything. What did it do? Right back down off this [07:55] resistance to this 10-minute time frame 50-day simple moving average, this resistance to this moving average. I’m seeing a similar pattern here, not quite as aggressive, but yeah, look at that. Even right here [08:10], TSLA had a hard time. Then out of the gate it did pop.

Look at that [08:21]. Looks like we already came back and touched it. Wow! Interesting wick right there [08:28]. We might be getting a burst out of the gate. Right here [08:47], we’ve got a little dip, dip-buy opportunity. That’s what I’m hoping for, just a little dip, little dip buy. Market calls in the red. Ultimately, I see TSLA going right back to possibly there [09:04] today. That’s 680.

I don’t know if I have enough time to go over all these. Look at that [09:33]. Does it get any better? Does it get any more perfect than that? Does it? I don’t think it does. We’ve got this [09:43]. If you ask me, I think M is a total jackpot trade today. This is not the best, easiest thing to see [09:54], but cup with a handle. I think the 1150 calls, which are right here [10:04] for this week’s expiration. Let me go out a month, actually. Why does the yellow bar hit there [10:13] and not there [10:14]? Is it because there’s bigger historical resistance?

Imagine one of these guys [10:28] just blah. I could bring this [10:33] down to here [10:37]. You could also draw another line right here [10:47]. That’s data. That’s valuable data right there [10:52]. You want to take inventory. It’s another 50 cents. From 12.03 to 12.25, eh, 20 cents, but we get here [11:15], it might be time to let it go. I’m liking everything I see on M. It could be blue skies ahead for M. I’m not messing around. I’m taking my profits and getting out. There’s so many gap, window fills, gap, window, gap, window, pivot, pivot, gap, window. That’s a big one right there [11:48].

Where are my lines? Where did all my lines go? What the heck? Didn’t I just draw lines, guys, or am I making that up? There’s that one [12:43]. Then there’s this [12:46] resistance too. This [12:49] is a big cup, spoon, handle, what I see. Came here [13:05] almost there. We could break out today, so I’ll have to keep an eye on this one and INTC.

Some of my members actually got this trade yesterday. They bought five days ago, and then boom. If you bought the day of, it’s the best-case scenario as far as return on your investment. When you go out a month on expiration, it’s a give and take. If you got weekly options on Intel and got in here [13:58]. I’m sorry, this is pre-market. If you got in here or here [14:01], waited one, two, and then on third day. If you got in right here [14:06], the day of, sold here, that’s 1,000, maybe 2,000% return.

The members who got the monthly expirations, one of my admins, Jose, he does alerts in the group. I think he went out maybe a month in expiration. It was about a 239% return. It’s a big difference between monthly expirations and weekly expirations. The thing about monthly expirations is you’re buying yourself more time to be right. You’re also giving up crazy returns. You also don’t run the risk of having all your premiums burned or having your options position go to zero with weekly expirations either. It’s a little give and take. This [14:57] is going.

We’re moving all the way to here [15:11], so this makes sense. You could have drawn some lines right here [15:21] the other day. You would have known when to get out. Your lines could have been right there, dead center in this [15:33] area of can’t get any higher and broke down. This is going to be a big cup and handle.

Let me extend this [15:45] out. We’ve got some good room right here, [16:17] we can tell. I think I’m going to get the 50 calls and go out. This week’s expiration is a little risqué, but I like it. What can I say?

What else did we need to look at? Intel, M, SNAP, SIRI, and RKT. I don’t know if we already went over RKT. I think 53 is in the cards, guys, today. Look at that [17:12]. SNAP out of the gate. SNAP, M, we’ve just got to get all these. Market fill, next one, market fill, one, two, three, four, five. It’s just hard.

You get this morning burst on all the stocks. It’s hard to jump around and get your fills on all of them unless you had some sort of automated system or five people, interns, who would all have access to your account, and you send them out. I don’t know. There’s got to be a way to do it, algorithm, or robot, or something.

SNAP, 53 calls expiring right now, 53 calls this week. I think we can get another big run-off like we did yesterday. Look for the dip buy opportunity off of the five-minute time frame, 50 simple moving average, or the support. Stick by your trade. If you believe in a trade, don’t panic. If you believe in your trade, and your technicals, and your charts, it’s your trade idea. Hey, this is my trade idea. Stick by it.

There’s nothing worse than selling for a loss and then seeing the stock play out like you thought it was going to play out. That’s a terrible feeling. Sometimes it doesn’t. That’s why we have risk management. You need small positions, and then stand by your trade, so you don’t panic just because you’re down 50, 70%.

You’re only playing with 1% of your portfolio with options. One to 3% with options, 10% your total portfolio with shares. Any single trade we take, your max risk with options should be 1 to 3%. I think I will start taking share trades, maybe, 10%. I get it. Guys and girls with smaller accounts, 5,000, 2,000, 3,000, 8,000, it’s hard to do the 1 to 3% rule. I get it.

It’s hard. I’ve been there. Bigger accounts, 100 grand, a million, those are ideal trading account sizes. That way you’re following the rules with every trade. You can get a decent sized return on your investment that pays your bills and helps you save. You have a $3,000 account, or even less, $1,000 account. You’re like, I’ve got to take 50%.

Some of the options we trade like TSLA, Amazon, you can’t even trade those. You can’t even buy one call option if your account’s 2,000. You’re all in, 100% of your entire portfolio all in one trade, fingers crossed, hold my breath, pray to God. You have to follow the rules. I’m sorry to sound like a broken record but rules, risk management, positions sizing, Take profits like a robot. Just take profits.

That’s what I’m looking at, right there [21:33]. I’m going to zero that puppy out. This is pretty clear, obvious support right here [21:41], so I’m going to keep an eye on that. I’m looking at the 21 calls expiring this week. Nice channel, gap fill, this was an area right there [22:10]. You can see it just consolidated and broke down.

Ultimately, I think we’re going right back to here [22:17] around this 21.66. If you want to get dead centered through all of that, 21.59. Could be nice. Something happened like this [22:44] today, down, and then vroom. Then SIRI, I forget why I even wanted to take this trade. It looks [23:05] choppy, pixelated, not a lot of volume. There’s no volume on this. Probably avoid this one.

That’s all I got, guys. See you on the charts.

Previous Post
Pre-market Live and Option Picks for 12 29 2020
Next Post
Pre-market Live and Options Picks for 12 31 2020