Before we jump into another trade, let’s take a win.

Just the other day, we recommended hedging for downside with the UVXY, which was trading at $14.90 at the time.  It’s now up to $20.25.  Exit half to secure the win.

We also recommended buying to open the DIA April 20 2018 247 put, as it traded at $3.85.

It’s now up to $12.65 for a quick win of 247%.  Sell to close half.

Unfortunately, further market downside is very likely, especially if we break through the 200-day moving average at 23,250. Failure there could send the Dow back to 22,000-support.

Strongly believing we’ll see further downside, let’s buy more puts, including:

  • The DIA May 18, 2018 229 put at open
  • The QQQ May 18, 2018 156 put at open
  • The SPY May 18, 2018 255 put at open

The safest thing to do here is diversifying with an equal dollar amount in each.

Open Positions:

Kratos Defense & Security (KTOS) -- $9.60

KTOS pulled back to $9.02 as the market sank on Friday.  It’s a hold.

Facebook (FB) stock -- $166

FB May 18, 2018 170 calls -- $7.85

After seeing an initial gain on these trades, FB did pull back to $159.39 with the market.

Boeing (BA) stock -- $327.45

This trade started off very well and then pulled back to $321 with the market.

DIA April 20, 2018 247 put -- $3.85 – exiting half today

Pro Shares Ultra VIX Short-Term Futures ETF (UVXY) -- $14.90 – exiting half

Exit half of each today.  We’re likely to see even more wins on this trade as the Dow’s falling knife pattern potentially sends it back to 23,250 (its 200-day moving average). If that average fails to hold, the Dow could sink to 22,000-support.

Dollar Tree (DLTR) - $93.70

DLTR May 18, 2018 97.50 calls -- $2.55

The stock is slowly recovering.  The underlying stock is now up to $91.95.

Foot Locker (FL) stock -- $42.65

FL May 18, 2018 43 calls -- $2.70

FL is beginning to push higher.  We’d like to see the stock push back to $46, near-term, which would refill that bearish gap.  It’s now at $43.75.

Goldcorp (GG:NYSE) -- $13

GG was opened as another hedge against market.  The stock last traded at $13.90 and is a hold.

Live Nation Entertainment (LYV) -- $44.10

LYV July 2018 45 calls – $2.65

Hold.  The stock pulled back with broad market to $41.90.

ETFMG Alternative Harvest ETF (MJ) -- $32.30
Cronos Group Inc. (CRON) -- $9.40

Canopy Growth (TWMJF) -- $22.80

We recommended these trades just recently, as the marijuana boom heats up.  Hold.  The MJ ETF is now at $30.75.  CRON is at $7.50.  TWMJF is up to $25.90.

Jacobs Engineering (JEC) stock -- $63.75

JEC is back to $55.58.  We have a price target of $70.  Hold.

UPS stock -- $106.50

UPS April 20, 2018 110 calls -- $2.30

FedEx (FDX) -- $239.75

UPS is back to $101.66. FDX is now up to $229.48.  Hold all.

Parsley Energy (PE) stock -- $23.75

The stock last traded at $27.32.  We’d still like to see a potential gap refill around $28 near-term, as the Permian Basin oil opportunity heats up.

Kush Bottles (KSHB) -- $7.85

We are continuing to hold, long-term especially as we near Canada’s plan to legalize marijuana by July 2018.  The stock last traded at $4.80. We have a price target of $10.

Daqo New Energy (DQ) -- $68.50

The stock has pulled back recently to $49.60, but we are holding long-term.  We have a near-term price target of $70 on the stock.

eCobalt Solutions (ECSIF) -- $1.45

ECSIF ran back to $1.31.  We still have a near-term target of $2.  Hold.

As recently reported by the Idaho Statesman:

“Cobalt prices have quadrupled over the last two years to $40 a pound, buoying the efforts by Canadian-based eCobalt to finally launch its Idaho Cobalt Project 22 miles northwest of Salmon. The company will decide later this year whether to begin production on its proposed underground mine, which already is fully permitted by the U.S. Forest Service and the Environmental Protection Agency.  The Idaho cobalt mine would be the only domestic source of the mineral. James West, who writes a newsletter about the Canadian cobalt industry, recently suggested Apple might seek a strategic partnership with eCobalt while it looks for U.S. investment. The eCobalt mine northwest of Salmon has been in the development stage for 30 years. It would produce 1,500 tons of cobalt annually, about 2 percent of the world supply.”

In short, there is still plenty of reasons to get excited about this stock, long-term.  We are reiterating a buy on the stock at current market prices.

Tronox (TROX) stock -- $20.45

This trade remains a long-term hold on the electric vehicle (EV) boom.  The stock last traded at $18.25. We have a price target of $25.

Pro Shares Ultra Short S&P 500 (SDS) -- $45.15

This remains a hedge against the long positions.  It’s now at $42.85.

First Data (FDC) stock -- $17.80

We continue to hold with the stock now trading at $16.

Advanced Micro Devices (AMD) -- $13.30 entry

After running back to breakeven for us, AMD also pulled back to $10.63.  Hold.

Closed trades:

  • Exited half of Zillow Group (Z) for 8% gain on August 8, 2017
  • Exited half of Zillow Group (Z) November 45 calls for 44% gain on Aug 8, 2017
  • Exited half of CELG October 2017 130 calls for 150% on August 31, 2017
  • Exited second half of CELG October 130 calls for 143% on Sept 1, 2017
  • Exited GOLD Sept 92.50 put and 95 put for a full loss
  • Exited half of LOW September 2017 75 calls for 71% on Sept 7, 2017
  • Exited VNDA stock for 8% on September 8, 2017
  • Exited VNDA October 2017 16 calls for 35% on September 8, 2017
  • Exited second half of LOW October 2017 75 call for 92% on Sept. 8, 2017
  • Exited LOW stock for 4% on September 8, 2017
  • Exited half of FEYE stock for 13% gain on September 12, 2017
  • Exited half of FEYE Dec. 14 calls for 68% gain on September 12, 2017
  • Exited half of FEYE Dec. 15 calls for 63% gain on September 12, 2017
  • Exited half of CCL October 2017 67.50 calls for 67% on September 13, 2017
  • Exited VIX October 2017 15 put for 18% on September 13, 2017
  • Exited VIX October 2017 14 put for 17% on September 13, 2017
  • Exited ZIV stock for 2% on September 13, 2017
  • Exited SVXY stock for 9% on September 13, 2017
  • Exited AMD September 2017 13 calls for a full loss, expired worthless
  • Exited second half of FEYE stock for 16% gain on September 14, 2017
  • Exited second half of FEYE Dec. 14 calls for 100% gain on September 14, 2017
  • Exited second half of FEYE Dec. 15 calls for 89% gain on September 14, 2017
  • Exited CRUS stock for a loss of 7% on September 22, 2017
  • Exited CRUS October 2017 60 calls for a full loss on September 22, 2017
  • Exited half of AJRD November 2017 30 calls for a gain of 200% on Sept 22, 2017
  • Exited half of AJRD November 2017 30 calls for a gain of 168% on Sept 22, 2017
  • Exited AJRD stock for a gain of 13% on September 22, 2017
  • Exited half of AOBC January 2018 17 calls for a gain of 47% on Oct. 4, 2017
  • Exited half of EXPE October 145 calls for 22% gain on October 6, 2017
  • Exited CCL October 2017 67.50 calls for a loss of -37% on October 17, 2017
  • Exited half of Shopify Inc. stock for a gain of 10% on October 25, 2017
  • Exited half of SHOP November 105 call for a gain of 79% on Oct 25, 2017
  • Exited TRUE stock for a loss on November 7, 2017
  • Exited TRUE January 2018 16 calls for a loss on November 7, 2017
  • Exited half of DIS December 15, 2017 100 calls for 44% on Nov. 8, 2017
  • Exited SHOP stock for a -10% loss on Nov. 9, 2017
  • Exited SHOP November 105 calls for a full loss on Nov. 9, 2017
  • Exited DIS stock for a gain of 5% on November 13, 2017
  • Exited second half of DIS Dec 2017 100 calls for a gain of 86% on Nov 13, 2017
  • Exited half of DIS Jan. 19, 2018 105 call for 100% gain on November 30, 2017
  • Exited half of AT&T January 19, 2018 34 call for a 55% gain on Nov 30, 2017
  • Exited half of AT&T February 16, 2018 34 call for a 97% gain on Nov 30, 2017
  • Exited half of DIS Jan. 19, 2018 105 call for 404% gain on Dec 4, 2017
  • Exited half of AT&T January 19, 2018 34 call for a 177% gain on Dec 4, 2017
  • Exited half of AT&T February 16, 2018 34 call for a 139% gain on Dec 4, 2017
  • Exited half of BBY stock for an 11% gain on December 5, 2017
  • Exited half of BBY Dec 15, 2017 57.50 calls for a 102% win on Dec 5, 2017
  • Exited half of AVAV stock for a 34% win on December 6, 2017
  • Exited RGR stock for a loss of 1% on December 11, 2017
  • Exited AOBC stock for a loss of 12% on December 11, 2017
  • Exited AOBC January 2018 17 calls for a full loss on December 11, 2017
  • Exited second half of AVAV for 27% gain on December 12, 2017
  • Exited half of SQM stock for 12% gain on December 21, 2017
  • Exited half of the AT&T (T) Feb 2018 36 calls for 67% on Dec 21, 2017
  • Exited half of the MU Feb 2018 44 calls for 22% on Dec 21, 2017
  • Exited half of AT&T (T) for 5% win on December 28, 2017
  • Exited half of AT&T (T) for 13.2% on December 28, 2017
  • Exited second half of T February 2018 36 calls for 56.4% on Dec 28, 2017
  • Exited half of X March 2018 36 calls for 50% on January 3, 2018
  • Exited second half of SQM stock for a gain of 14% on January 3, 2018
  • Exited second half of T stock for a gain of 1% on January 3, 2018
  • Exited second half of T stock for a gain of 9% on January 3, 2018
  • Exited half of X stock for a gain of 8% on January 5, 2018
  • Exited second half of X March 2018 36 call for a 58% on January 5, 2018
  • Exited second half of MU February 2018 44 calls for 41% on January 5, 2018
  • Exited U.S. Steel (X) for an 11% win on January 10, 2018
  • Exited MU stock for 0% on January 10, 2018
  • Exited CY stock for a return of 7% on January 10, 2018
  • Exited half of MRK stock for a return of 12% on January 16, 2018
  • Exited half of MRK January 2019 57.50 calls for 122% on January 16, 2018
  • Exited CCL stock for 4% win on January 18, 2018
  • Exited MRK stock for a 10% win on January 22, 2018
  • Exited MRK January 2019 57.50 calls for 103% on January 22, 2018
  • Exited half of ONCE stock for a win of 14% win on January 23, 2018
  • Exited OSTK with a -30% loss on February 5, 2018
  • Exited half of CCL April 2018 67.50 for a win of 41% on February 6, 2018
  • Exited DIS February 110 put for a win of 160% on February 6, 2018
  • Exited AT&T February 2018 38 put at a loss of 26% on February 6, 2018
  • Exited AT&T March 2018 38 put at a loss of 8% on February 6, 2018
  • Exited SEDG stock for a 32% win on February 16, 2018
  • Exited half of IRBT March 16, 2018 65 calls for a win of 36% on February 20, 2018
  • Exited half of X stock for a win of 22% on February 20, 2018
  • Exited half of X March 16, 2018 40 calls for a win of 264% on February 20, 2018
  • Exited half of X stock for a win of 16% on February 21, 2018
  • Exited half of X March 16, 2018 40 calls for a win of 156% on February 20, 2018
  • Exited second half of IRBT March 16, 2018 65 calls for a win of 31% on Feb 22, 2018
  • Exited half of ETSY June 15, 2018 20 calls for a win of 44% on Feb 22, 2018
  • Exited half of the IRBT April 20, 2018 67.50 calls for 50% win on Feb. 26, 2018
  • Exited half of the FDX March 16, 2018 250 calls for a 100% win on Feb. 26, 2018
  • Exited second half of IRBT April 20, 2018 67.50 calls for a 63% win
  • Exited PLOW for a win of 14% on February 28, 2018
  • Exited ETSY stock for a win of 26% on February 28, 2018
  • Exited ETSY June 20, 2018 20 calls for a win of 140% on February 28, 2018
  • Exited IRBT stock for a win of 5% on March 2, 2018
  • Exited CCL April 20, 2018 67.50 put for a win of 73% on March 2, 2018

Ian L. Cooper

Traders Daily