A basket of three Independent strategies that do not require a one-way market to succeed. One: TSLA To my surprise a close above $170 did not generate a fresh Trend Model Buy Signal, but the Stochastic Indicator is clearly in a Buy zone and with a minimum of 1-2 weeks of price strength still ahead. With the Trend Model Buy its best to stick to a stop on any new calls, the standard 50% trailing stop fits nicely with the Sep 15 monthly expiration, any strike between $200-$250 will do, with the highlighted $200C in the table below being the least speculative of the lot. As an aside, when evaluating the fundamentals of TSLA stay away from the perma- bears and be aware of Tesla's on the road, especially at traffic lights and how many Tesla's you can count before the red turns to green. Two: Crypto-Miners I seldom pass along, let alone act, on tips, but considering the source of this one, I'm making an exception. RIOT and MARA are crypto miners and each has risen over 300% year-to-date (with Bitcoin up 75% during same time frame). That's not an option return, it is the underlying stock return. A colleague who is has been deep into crypto since Bitcoin was under $1K correctly pointed out to me that the real money is being made on Crypto miners, with these two among the best of the best. Option returns, as you can see below, have been up even higher. RIOT - YTD with Trend Model Buy/Sell Signals RIOT Jun 16 $3.00C Note: Volume spike on January 4th MARA - YTD with Trend Model Buy/Sells MARA Jun 2023 $5.00C Both RIOT and MARA are on Trend Model Sells, making this not an ideal time to initiate long positions and probably a tad late to buy puts. With spikes like we have seen both up and down, these are prime candidates for intermediate term option trading. That Crypto is global and independent from equity markets adds to the attractiveness of trading options on these miners. Look for a new trade when our models provide fresh entries. Three: VIX Despite the robust rally on Friday, the bearish big picture outlook will not go away. Someone agrees, having bought $5 Million dollars of the Sep VIX calls on Thursday. Huge volume spike on Thursday, May 3rd. A lot can happen in four months. VIX is overdue for a spike and someone buying $5 million of calls is just one random opinion, but unusual enough to take note and look for a spot to join this trade, or one with similar risk:reward parameters, in the days ahead. Note that a volatility spike that takes VIX to $80 makes those calls worth $20, a +3,000% return on a 65 cent call. VIX - Long Term Winding up to a spike > 80
