PropNotes

PropNotes

Something happened this morning that I think is worth talking about - the official death of the categorical re-flation trade. Thanks Delta Variant and UMCSI! Over the last eight months, there's been a lot of prognosticating about the state of inflation within the economy, coupled with fears that the Fed had gotten it wrong. Runaway Inflation was considered a key...

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My thoughts on why traders fail, and each of the stumbling blocks that people find themselves against. Cheers!

PropNotes

-- With Senate Majority Leader Chuck Schumer proposing legislation on Wednesday to federally legalize Cannabis, it's important to analyze what ETF options investors have to invest in the budding sector. -- There are many different ETFs, each with different liquidity profiles, investment strategies, and geographical focuses. -- MSOS and YOLO are the best...

PropNotes

Morning all! An oft-overlooked stock, RAD is trading at a solid value to it's underlying performance on a number of metrics. As it happens, investors weren't happy with the previous earnings report, and the stock has slid some 30%+ in the last few weeks. This presents a great opportunity for long term investors -- selling the 11 strike, October monthly puts....

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Good morning guys! So I was chatting with a good friend last night (who is an excellent prop trader), right as he was in the middle of analyzing the recent split trade phenomenon that's been going around. If you haven't been paying attention, over the last several months, AAPL, TSLA, and NVDA have conducted stock splits, which have each boosted share prices +40%,...

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Hey guys! Happy Independence Day! I hope everyone has enjoyed the holiday weekend and gets some rest on the day off tomorrow. Today's trade is an old pick that's come back into an area I wouldn't mind starting to scoop some via long shares and short otm puts. Reminder: DM is a company that makes 3d printers that print metal, an industry that's supposed to expand...

PropNotes Updated 

Good evening! Just wanted to throw up a quick post, because it seems BTCUSD and crypto in general is in a very interesting spot. Right now, we are in the midst of a massive volume node, between 41k and 31k. As of this very minute, we are bouncing off of a huge area of support, which has held numerous times since the initial breakout above 20k last December. The...

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Looks like risk off in front of the Fed today. I'm a buyer into this degree of downside extension for a short term bounce play. No real catalyst for the selloff aside from the lower trading revs guide, but I don't think that's a huge deal and was already mostly priced in due to the general slowing market conditions.

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Over the course of the last couple days, BTCUSD has been rejected from the previous highs after failing to gain any buying volume on the attempted breakout. This furthers the idea that we are on the "backside" of the move, and there will likely be more downside. Of course, BTC could always surprise to the upside, but we have bids out near 20k. Cheers!

PropNotes Updated 

We've gotten some questions of late about how to trade the AMC squeeze, and while we don't have any position, we have a simple, defined risk trade here that we would consider taking if triggered. If it closes green today, and gaps up tomorrow, we would strongly look at buying some ATM Aug Puts. No matter what happens here, it's clear that fair value for this...

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I was talking to a buddy of mine last weekend who works in lumber, and we were just chatting about the markets over some drinks. At one point in the conversation, we were talking about shipping, and he was mentioning that "you can't beg, borrow, or steal" (verbatim) freight traffic right now, because of the shipping situation at the port of LA. In other words,...

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I'm of the opinion that the oil market has gone too far, too fast (along with a bunch of other commodities), and I'm looking at this as a potential spot to get some short. Even prior to covid, in what you might call a "normal" supply and demand environment, oil stayed between 75 and 27, with the majority of the price action occurring between 65 and 43. Oil is at a...

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You have no idea how hard it was for me to avoid buying LMND today. At just 1/3 of it's former high from a few months ago, this stock looks like a bargain, as the fundamental story remains intact. However, with multiples compressing, fcf machines crushing, and TLT getting smoked I'm extremely nervous to dip a toe here. I've settled for selling jun 4 $50 strike...

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Morning all! I can smell the risk off in the air. Just thinking here that PYPL looks like a decent long if you can find a decent candle to execute off of, if it gets hammered on good earnings this week. Might not come to fruition but I like it broadly.

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Spectacular looking weekly chart combined with a nice price base on the daily, combined with relative strength this morning off the ISM number & an in favor business model. This could easily see 55 again soon. I'm risking a small amount vs 37.34. Good luck to all! Cheers!

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This is a three piece yield swap // Long MPLX - a high quality, cheap, high yield MLP Long PINE - an extremely high quality high yielding REIT Short HE - an overvalued, constrained utility poised to underperform long term with heavy overinvestment in legacy renewables. Should yield about 3% with hedged risk and some medium term upside I estimate around +40%. If...

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The chart really speaks for itself here. Even though we have bounced off of the recent lows, the trending price structure is now cracked. This will likely lead to chop / downside for the near / medium future. I don't like it long from here. This isn't to say we won't see highs, but the daily chart momentum is over for the near term. Cheers!

PropNotes Updated 

Alright, so a quick idea I just had that I don't dislike too much -- gun to head I think TSLA looks good long above 721. I think a ton of new buying momentum could come in, propelling the stock higher. Granted, I still hate the valuation and this is a *TRADE* idea, not an investment, but buying the breakout and then risking to the weekly candle low could be a real...