Hey Options Trader,

Welcome to this weeks edition of OTU! We have a lot to cover including who might win this election according to the betting markets.

What We Are Covering:

1. Trump or Kamala? Here’s what the betting market predicts.

2. QQQ (Nasdaq) looking ripe to breakout to new all time highs prior to election. WHY?

3. NVDA (nvidia) makes new all time highs again! Will it hit $160 before Christmas.

4. Livestream tomorrow 10/22 at 9am Pacific!

Trump Or Kamala?

In the past few days the betting market, called PolygonMarket, went from 49/51 in Kamala’s favor to 64/36 in favor of Trump. Mind you US residents are not allowed to bet on this platform, but people get around the system due to the platform accepting cryptocurrency.

Could this clear direction be easing the markets of overall election fear and uncertainty? Personally I don’t think the market cares. With easing interest rates by the Federal Reserve and unemployment numbers improving, I think the market is primed for a multi year bull run either way.

It is interesting to see the divergence in results though.

QQQ ready to breakout!

QQQ is getting primed to breakout. As of late, investors have been rotating into beat up stocks and utility stocks that have good dividend payouts. I do believe that all the sidelined cash will pump the high risk Ai and technology stocks here in the next couple months once the election results are behind us.

In fact right now there is still a record amount of sidelined cash in money market accounts. $6.46 Trillion dollars to be exact.

I know it seems like some of the valuations of these growth stocks are way above historical averages, but you must consider the fact that the Fed printed 40% of the money supply in one year (2021). That money has been sitting on the sidelines and is ready to be deployed into assets at any moment.

$NVDA

One of the sectors that has been benefiting from the sidelined cash that is now entering the markets is Nvidia. Today we saw it hit fresh all time highs. In fact, at this rate I think we could see an $nvda at $160 before Christmas.

My positions:
4 $125 Cash Secured Puts (Nov 1) - will be rolling these up to the $135 strike here soon

300 Shares - Assigned at $117

2 $130 Covered Calls (Nov 1) - My shares are going to get called away

1 $145 Covered Call (Nov 1) - These shares might get called away too

My new CC strategy is to sell the 20 delta call instead of 30 delta specifically on NVDA to let the shares run more next go around.

MY FIRST LIVESTREAM @9am Pacific Tuesday Oct. 22

Hope to see you there!

-Ryan