Bitcoin Bitcoin is up 40% in the past month. Meanwhile, BITO is up about the same, but our PRO Service BITO Nov 15th calls were up as much as 884% before going off the board up 588% on Friday. All of those returns are respectable for a one-month hold, but this one in particular highlights why we chose to trade options to juice returns. There is also a 2X bullish ETF, BITX which is up about 80% for the month and it also has options available to pump-up returns. Because of its leveraged component, its calls are about twice as expensive as BITO calls, so for now, we will continue to default to BITO calls for our Bitcoin option trades in both the Premium and PRO trading services. Finally, there is MSTR, which we have traded before, famous for its CEO's Michael Saylor's championing of Bitcoin's cause, it is up from $200 to $350 during the same 30 days. It's calls are likewise, tres chere (very expensive). Bottom Line: I'm good with sticking with BITO calls to play the next leg up in Bitcoin which as the chart below suggests, is another 40%, minimum. RKLB Musk's SpaceX preparing to launch tender offer in Dec at $135/share, sources say With SpaceX and this news of a tender offer valued at $250 Billion coming in December, RocketLab's seemingly paltry $9.4 Billion market cap seems woefully undervalued. I'm not saying this explains liftoff since we have been buying RKLB calls, but there is some logic in the comparison. Also, watch for TSLA to also benefit, as Elon is loyal to his TSLA shareholders almost to a fault. SpaceX Rival Rocket Lab's Stock Soars to All-Time High With Launch Planned for 2025 PLTR I'll let the numbers directly cover anything I have to say about PLTR and if you need more perspective, see Into The Close from yesterday. THE BIGGER PICTURE Those are the highlights from our recent trades, but what is of greater interest to me now is what said highlights will look like come January. We saw a spike up in everything into and out of the election, followed by what only can be described as a typical and normal retracement this past week. Extreme bullish sentiment has not been eroded much, allowing for one of two scenarios to unfold. The first would be a resumption of FOMO buying of favorites, for which we are well positioned as per above options. The second would be a much deeper retracement. Our 50% trailing stops will provide exit strategies well before giving up much more in the way of well earned gains, but that deeper retracement theory could turn into something much worse and for which the portfolios in both services are not positioned, YET, to profit. Ergo, that is the scenario I want to address for new positions, if any, based on further market weakness (See SPY comments below). If and when those positions are sent out in new Alerts, I will support any recommended action with the appropriate charts and reasoning. For now, a single SPY chart so that everyone is on the same page. SPY Progressively more bearish support levels represented by the red horizontal rays. It would only take breaking down through the top one to merit some put action, although the smaller channel coming up from mid-September would be a first warning support is not holding and more bearish if the second and third horizontal rays are violated. Then there is that big upward trend channel coming up from this time last year. If that channel is ever in our rear view mirror, i.e., broken to the downside, we had better be out of calls and into puts, or I am not doing my job. Active Option Trades PRO Service Premium Service
