Category Archives: Tematica Options+

Dear Subscribers:

 

For the past several years, you placed your trust in me to help you navigate the waters of options trading. We’ve done this through several different services, most recently the Tematica Options+ service and we’ve had some tremendous success at times — and of course, some not so successful periods as well.

 

Given the recent turbulence in the market, navigating the options trading landscape has become a challenge. As I wrote in last week’s issue, we’re dealing with a market that can turn against us with a single tweet or news headline, despite the underlying fundamentals. It’s for this reason that I’ve come to the decision to hand the Tematica Options+ reigns off to someone that is a dedicated full-time options trader that can utilize all the tools of the trade. That someone is Bob Lang of Explosive Options.

 

By now, you should have received an email from Bob about your new membership at Explosive Options. Click here to view the email online. We’re going to keep the Tematica Options+ content up on our site for a few more days and you’ll continue to have full access until then.

 

Thank you again for all your support. I can’t think of a better person to take the options reigns for you than Bob!

 

Sincerely,

Chris Versace

Weekly Issue: A market that could turn on a tweet, makes for difficult options trading environment

Weekly Issue: A market that could turn on a tweet, makes for difficult options trading environment

Trade worries continue to escalate stoking uncertainty in the process and raising investor concerns. This has led the major market indices to leak year to date gains, but we have yet to see the trade and tariff impact be factored into earnings and growth expectations for the second half of 2019. As that happens in the coming weeks, the market waters are likely to remain choppy at best. We’ll continue to heed the thematic signals that have guide our thematic investing lens that has allowed the bulk of the thematic leaders to shine so far in 2019. Given the market’s prospects that can whipsaw option trades, as we saw last week, we’ll sit on the sidelines rather than risk capital.

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Weekly Issue: Gap’s Upcoming Dividend Crunch

Weekly Issue: Gap’s Upcoming Dividend Crunch

With trade and economic uncertainty remaining in focus for the stock market, we are addding a defensive thematic position in AT&T shares to the Select List given the sticky mobile busines, 6.3% dividend yield and the pending valuation transformation to be had with WarnerMedia. Retailers continue to be in headwind hotwater with two of our investing themes, and Gap specific decision puts its dividend at risk. That has us adding a Gap put position at Tematica Options+ this week.

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Weekly Issue: Adding an M&A Driven Position

Weekly Issue: Adding an M&A Driven Position

As expected, US-China trade has once again taken center stage, and with prospects likey stalled in the short-term, it means the market is once again sitting on trade pins and needles. Meanwhile fresh data show the economy is slowing considerably compared to the March quarter, and odds are investors will start to question June quarter EPS expectations and the market’s current valuation. With President Trump dropping the hammer on Chinese telecom company Hauwei, we discuss the impact to the Thematic Leaders and Select List residents. At Tematica Options+ new rumblings are causing us to add a call option position in a former Thematic Leader.

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Weekly Issue: Looking to Avoid the Dead Cat Bounce

Weekly Issue: Looking to Avoid the Dead Cat Bounce

The market has embraced a new round of uncertainty as US-China trade took a route few were expecting just a few weeks ago. New rounds of tariffs have amped up trade talk tensions while leading investors to once again question growth expectations for the economy and earnings. We’ll continue to focus on our thematic investing lens, the same one that led us to add Axon Enterprises to the leaderboard and its shares are up nearly 50% year to date even after the recent sell off. We discuss why we remain bullish and share what’s next to watch for Amazon and Costco Wholesale. From an options perspective, sitting on the sidelines has proven a smart move as we saw the market swing sharply the last few days. Let’s avoid a potential dead cat bounce and wait for the market to find its footing before making our next trade, potentially one in retail.

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Weekly Issue: Renewed concern over trade is weighing on the market

Weekly Issue: Renewed concern over trade is weighing on the market

This week another Art of the Deal salvo from President Trump brought volatility back in the market as US-China trade talk concerns erupted. We suspect this is part of some late stage negotiating strategy by Trump to win extra concessions from China, but we need to see how trade talks progress this week to see what happens next. Also this week, the European Union once again trimmed its 2019 growth prospects and following its March quarter earnings we are removing Del Frisco’s shares from the Thematic Leaders. We are also sitting out on the options front this week, given the market environment that could whipsaw either a long or short call option play.

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Weekly Issue: Looking to Wade Back into the Mix Next Week Amid Calmer Waters

Weekly Issue: Looking to Wade Back into the Mix Next Week Amid Calmer Waters

As the March quarter earnings season wears on, we’ve got some updates to share on several thematic leaders and select list residents. We also puzzle through the latest economic data, which despite the eye popping initial March quarter GDP print suggest the global economy is on a slowing path. With a choppy earnings market, we’re sitting out from making a new options call this week, waiting for the choppy waters to calm before putting capital to work in either long or short option positions.

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This Week’s Issue: New Position in Home Improvement Player

This Week’s Issue: New Position in Home Improvement Player

This week we go from the frying pan into the earnings season fire with 30% of the S&P 500 companies report their quarterly results. This will offer a number of thematic data points, as we illustrate with the results from Coca-Cola, Lockheed Martin, Twitter and Verizon. We also chew on the conflicting signals between the Retail Sales and Housing data for March. The answer to that leads us to add a call option position in Home Depot shares at Tematica Options+.

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Weekly Issue: The Mismatch Between The Market’s Move Higher and Declining Earnings

Weekly Issue: The Mismatch Between The Market’s Move Higher and Declining Earnings

Ahead of the Easter holiday week, we have a jam packed issue as we review some of the latest economic data and breakdown the IMF’s recent downward revision for its 2019 GDP forecast. And yes, earning season is almost upon us. Before that, we have Disney’s annual Investor Day at which it will formally debut its streaming service Disney+. We also visit with Middle Class Squeeze Thematic Leader Costco Wholesale (COST) following blow out March quarter same-store sales. And eMarketer gives us reasons to be positive on Alphabet/Google as well as Thematic King Amazon. At Options+, we will continue to hold our short position in Veeco Instruments as well as our inverse call option position as earnings season gets underway.

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Weekly Issue: Putting on Our Apron After a Barn-Burner of a March

Weekly Issue: Putting on Our Apron After a Barn-Burner of a March

As we close the books on the barn burning March quarter for stocks, risks remain as we head into the March quarter earnings season. A number of Thematic Leaders delivered outsized returns during the March quarter, and we recap several positions that have been in the news including Apple, Universal Display and others. We are adding a new position in Blue Apron shares at Tematica Options+, and recapping confirming news for our short position in Veeco Instruments.

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Weekly Issue: Adding Another Inverse ​ETF Call

Weekly Issue: Adding Another Inverse ​ETF Call

We continue to recevie more signs of a slowing global economy that along with other factors looks to be setting up a rocky March quarter earnings season. We continue to think investors should have some downside protection in their holdings for at least the next several weeks. We saw a nice pop in our SH calls last week, but given what’s likely ahead we’ll not only continue to hold them, we’re adding another inverse ETF call option position today as well.

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