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Weekly Position Updates / Extreme Trade Updates (12/24/18)

Extreme Trade Updates (12/24/18)

December 24, 2018

It was supposed to be one of “the most wonderful time of the year.”

Instead, it’s been one of the most volatile ones on record.  And one that many of us wish we could forget.

At the moment, the Dow Jones and S&P 500 are now both deep in correction territory, and on track for their worst performance since the Great Depression in 1931.

But none of this comes as a real surprise.  Fears of a global slowdown, an intensifying U.S.-China trade war, and Federal Reserve comments that its satisfied with its current path to reduce its balance sheet are wreaking havoc across the markets with no end in sight.  However, it appears the sell off is a bit overdone.

Here’s what we continue to hold.

Johnson & Johnson (JNJ) January 18, 2019 130 put — $4.25
JNJ February 15, 2019 130 put — $6

Johnson & Johnson continues to plummet following the Reuters story on asbestos claims.  We recommended these two positions after closing out the JNJ December 145 put for more than 405% returns.  The JNJ January 2019 130 put has now run from $4.25 to $8.35.  Consider exiting half of this trade.  The JNJ February 2019 130 put has now run from $6 to $9.62.  Exit half of this trade, as well.

Best Buy (BBY) — $63.75
BBY January 2019 65 calls — $2.90

We recommended both BBY positions on November 26, 2018. At the moment, the BBY stock trades at $48.25 after pulling back with the broader market.  The good news is we already exited half of the BBY January 2019 65 calls last week when they ran to $4.20.  Hold the stock and the second half of the calls.

Target (TGT) — $68.50
TGT January 2019 70 calls — $2.75

The stock now trades at $61.55.  Both positions remain on hold at this time.

Activision Blizzard (ATVI)– $50.55
ATVI January 2019 52.50 calls — $2.35

While the stock did pull back to $44 in recent days, we continue to hold.  It’s still aggressively oversold at this time.

Roku Inc. (ROKU)– $43.65
ROKU January 2019 45 calls — $3.65

Unfortunately, ROKU took a big hit on the market pullback.  Exit both positions at this time.  We’ll look to jump back in at a later date.

Square Inc. (SQ) — $64.65
SQ January 2019 70 calls — $4.05

SQ also took a big hit on the market pullback.  Exit both positions at this time.  Look to jump back in again shortly.

Viking Therapeutics (VKTX) — $11.65

This stock was recommended on November 12, 2018 and remains a long-term hold.  It last traded at $7.16.

Johnson & Johnson (JNJ) December 2018 145 put — $2.85

We took a win of more than 405% on this trade just last week.  It has since been closed out.

MedMen Enterprises (MMNFF) — $4.25

We recommended MMNFF at $4.25 as we near Canadian legalization.  After testing $5.72, it has since pulled back to $2.70.  Continue holding with a long-term target of $10.

Adobe Systems (ADBE) — $248.96

The stock now sits at $205.16 and remains a hold.  We have a near-term price target of $280.

Raytheon (RTN) — $187.12

RTN is now trading at $146.17.  Hold the stock with a near-term price target of $210.

Twitter (TWTR) — $32.68

Hold the stock.  It’s aggressively oversold at a current price of $26.45.

Barrick Gold (NYSE:ABX) — $10.25
ABX January 18, 2019 10 calls — $1.01

As gold begins to rebound higher, related stocks are beginning to push higher.  We have a near-term price target of $14 on ABX.  It last traded at $13.64.  We exited half of the calls just the other week, as they traded at $2.83.  Hold the second half of the calls and the stock for the time being.

Goldcorp Inc. (NYSE:GG) — $10.84
GG January 18, 2019 11 calls — 78 cents

The stock is down slightly at $9.72.  We continue to hold on oversold conditions.  We have a $15 price target.

OrganiGram Holdings (OTC:OGRMF) — $4.98

As the marijuana story heats up on corporate interest and Canadian legalization, stocks such as OGRMF should continue to push higher.  It last traded at $3.16.

Kroger Company (KR) — $29.65

KR is still oversold, now trading at $26,60.  It’s a hold at the moment.