It’s a Green Christmas!

Dear New Money Club Member,

The Santa Claus rally into Christmas lost momentum this week…

Stocks kicked off the week opening deep in the red, but many were able to claw back some of those losses.

I’m not sure if this was a “sell the news” event or if Wall Street found this stimulus deal as a lump of coal in its stocking.

Either way, we were able to take another winning trade to the window.

Now, the fear gauge, known as the CBOE Market Volatility Index (VIX), for the S&P 500 is at 22 and above our key level at 15. This suggests that quick shakeouts can happen, as we saw on Monday.

In this market it’s important to take profits when you see them — and that’s what we will continue to do.

If we ignore the noise and focus on our system, we’ll come out on top. That’s the power of options and being a part of the New Money Crew!

Now let’s talk shop…

Portfolio Update

On Tuesday, we issued alerts to:

  1. Sell to Close Plug Power Inc. (NYSE: PLUG) Dec. 24, 2020, $35 calls (PLUG201224C00035000) at the market.
  2. Buy to Open Cloudera, Inc. (Nasdaq: CLDR) Jan. 22, 2021, $15 calls (CLDR210122C00015000) up to $0.90 per contract or better, for the day. 
  3. Buy to Open Coty Inc. (NYSE: COTY) Jan. 22, 2021, $8 calls (COTY210122C00008000) up to $0.75 per contract or better, for the day.

So right now, we’re holding:

  • Sandstorm Gold Ltd. (NYSE: SAND) Jan. 15, 2021, $10 calls (SAND210115C00010000).
  • Axalta Coating Systems Ltd. (NYSE: AXTA) Jan. 15, 2021, $32 calls (AXTA210115C00032000).
  • Cloudera Inc. (Nasdaq: CLDR) Jan. 22, 2021, $15 calls (CLDR210122C00015000).
  • Coty Inc. (NYSE: COTY) Jan. 22, 2021, $8 calls (COTY210122C00008000).

Let’s keep focused and let the market come to us. And I’ll make sure to keep you updated every step of the way.

1 More Quick Programming Note…

The market closes tomorrow at 1 p.m. Eastern time due to Christmas Eve, and it’s closed entirely on Friday in observance of Christmas.

I’ll open up the mailbag next week, so if you’d like me to address any of your questions, make sure to email them to questions@newmoneycrew.com.

Plus, I’ll have a new trade for you on Monday.

Until then, my team and I wish you a very Merry Christmas!

Sincerely,

Joshua M. Belanger

New Money Club