New Money Link Trade Alert:

Hey guys,

As mentioned in last Friday's update, I've got some new trades for you this week!

First, let’s exit our core portfolio position:

SELL NFLX AT $480 OR HIGHER.

BUY TO COVER CMCSA AT $42.75 OR LOWER.

SELL NFLX 11/20/20 $535 CALLS AT $4.50 OR HIGHER.

SELL CMCSA 11/20/20 $45 PUTS AT $3.25 OR HIGHER.

And now, for our new core portfolio position, let’s…

BUY TOL AT $45 OR LOWER.

SELL SHORT SPG AT $64.50 OR HIGHER.

And for an options play:

BUY TOL 1/15/21 $40 CALLS AT $8.50 OR LOWER.

BUY SPG 1/15/21 $65 PUTS AT $9 OR LOWER.

This has been a tough year in real estate. The Covid shift from commercial to residential has been a seismic one. It’s a tale of two cities in the residential real estate market, where new properties are getting snapped up in a panic to take advantage of low rates. And commercial properties and malls continue to languish.

If the past week has made anything clear, it’s that Covid will affect us for a while and the behavior shift for the masses is real. I expect the residential housing market to be the next great bubble as tumbleweeds blow across mall parking lots. Toll Brothers is one of the nation's most esteemed homebuilders, which I like long, and Simon Properties owns commercial retail real estate. This is a Money Link that has all the hallmarks and potential of a great link.

It’s important to execute both sides of the link at the same time and to respect the limit levels mentioned above — never chase a trade.

As always, you can track our open positions here.

LFG!

Jeff Zananiri

Joy of the Trade