Goodbye August So long, honey babeWhere I'm bound, I can't tellGoodbye is too good a word, babeSo I just say, "fare thee well"I ain't a-sayin' you treated me unkindYou could have done better but I don't mindYou just kinda wasted my precious timeBut don't think twice, it's all right It was never too soon to say goodbye to August. The good news is that the market is heading into the sweet spot for option trading: Labor Day through Thanksgiving. Expect the dearth of good trades in August to be replaced with a series of short and medium term trade opportunities coming as soon as next week. The bigger, deeper pockets and institutions will be back in the game, returning from their summer in the Hamptons and ready to move markets. We feed off of their power, and our only job is to identify and follow. Tesla Tesla's 2021 Annual Meeting of Shareholders is only a little over one month away (October 7th) and news is already starting its flow. Regardless of Short and Intermediate Term trading opportunities, TSLA is on a Long Term Buy Signal for shares and 2023 Calls, subject only to a 50% stop. Earlier this summer we considered a break above $650 as confirmation of a move above $1,000 by year end and any dip below $500s screaming buy: TSLA Strategy. Price Target Update: EOY 2021 price target is $1,000 - $1,200 and any dip below $650 is a Screaming Buy. Much more on TSLA coming in the weeks ahead. Bitcoin Since the Aug 23rd cycle low Bitcoin has risen about $1,250. Marathon Digital Holdings (MARA), our very tradable Bitcoin miner, has risen from about $35 to $44.50 in the same period, for about a 30% gain in the shares. The MARA at-the-money calls (Sep 17th $35C) have about doubled. These are approximate because the past cycle low and the next cycle high (Sep 6) are both occurring on weekends. Nonetheless, there was a decent profit to be made being long MARA calls over the past two weeks. If still holding the calls, today (Friday) should be used to exit, while any new short position via puts should probably hold off until next Tuesday. The same goes for trimming any Bitcoin or GBTC positions to take advantage of what the cycle says will be lower Bitcoin prices over the next two weeks, with the next buying opportunity on about the Harvest Full Moon of Sep 20. That's it from me until Tuesday, unless something crazy occurs before today's close. Next huge trade opportunity still looks like a Long VXX trade...just not yet. Have a great end-of-summer weekend, and stay safe out there, Allan
