“Armchair Trader Series” Recommendations
- Week Beginning -
Monday, March 09, 2020

by Ian Harvey

IMPORTANT NOTE: This is a recommendation and individual members can use their own discretion as to when to enter or exit!

You may also wish to read Stock Options Made Easy Trading Philosophy

ALSO

"Trading Capital Management"



Option PUT Trades – AAL, JBLU, NCLH, DAL

Thursday, March 12, 2020

** OPTION TRADE: Buy AAL MAR 20 2020 14.000 PUTS.

** OPTION TRADE: Buy JBLU MAR 20 2020 12.000 PUTS.

** OPTION TRADE: Buy NCLH MAR 20 2020 12.500 PUTS.

** OPTION TRADE: Buy DAL MAR 20 2020 38.000 PUTS.


NOTE…..NO BUY PRICE HAS BEEN INCLUDED DUE TO THE MARKET VOLATILITY…..BUY AND SELL AT THE BEST AVAILABLE.

 The Market Situation.....

The Dow Jones Industrial Average plunged 5.9% Wednesday, bringing its decline from the prior high to 20.3%. That's what is understood to be a bear market. Other indexes are close behind.

The Dow Jones average made another 1,000-point swing, this time falling 1,465. The index made fresh lows for the current market correction. The Dow's 20% decline is on par with the 20% decline the S&P 500 made in a brief bear market in late 2018. The Nasdaq was punished 23.9% in that October-December bear market.

Most of the 30 Dow stocks Wednesday fell more than 3%, and many over 5%.

And Now, The Europe/U.S. Travel Ban.....

An unprecedented 30-day ban on foreigners arriving from most of Europe is set to further roil the travel industry, especially ahead of the peak spring and summer travel season.

Demand was already sapped as airlines scrambled to cut costs by reducing flights, freezing hiring and offering employees unpaid, voluntary leave.

This is "probably worse" than the demand experienced after 9/11, said JetBlue CEO Robin Hayes.

The State Department has further issued a Level 3 warning that recommends U.S. citizens to reconsider all travel abroad, "even countries, jurisdictions, or areas where cases have not been reported may restrict travel without notice."

So.....

Let’s benefit from the Airlines shock downturn based on this news.

Keep your sell points sensible and do not be too greedy.


UPDATE ON YESTERDAY’S TRADES…..

Thursday, March 12, 2020

 

** OPTION TRADE: Buy VRTX MAR 20 2020 220.000 PUTS.

BOUGHT 4.00 --- UP 6.40

** OPTION TRADE: Buy BABA MAR 20 2020 200.000 PUTS.

BOUGHT 5.15 – UP 8.40

** OPTION TRADE: Buy FB MAR 20 2020 170.000 PUTS.

BOUGHT 4.30 – UP 7.85

EXPECT THESE STOCKS TO CONTINUE THEIR DECLINE TODAY AND THE PROFIT TO CLIMB!

DON’T BE TOO GREEDY THOUGH!


Option PUT Trades – VRTX, BABA, FB

Wednesday, March 11, 2020

** OPTION TRADE: Buy VRTX MAR 20 2020 220.000 PUTS.

** OPTION TRADE: Buy BABA MAR 20 2020 200.000 PUTS.

** OPTION TRADE: Buy FB MAR 20 2020 170.000 PUTS.

NOTE…..NO BUY PRICE HAS BEEN INCLUDED DUE TO THE MARKET VOLATILITY…..BUY AND SELL AT THE BEST AVAILABLE.

The Dow Jones futures plunged late Tuesday, along with S&P 500 futures and Nasdaq futures, after the major indexes enjoyed their best one-day gains since 2018.

This trend has continued this morning, despite yesterday’s rally based on President Donald Trump’s call for payroll tax cuts and other coronavirus stimulus measures being in the works.

Coronavirus Update.....

Coronavirus cases in the U.S. have reached at least 971, with 29 deaths.

Westchester County suburb of New Rochelle, near New York City, is setting up a "containment area." Major gathering places and facilities will be closed, including malls and churches. Westchester County has more than 100 coronavirus cases and many more people in quarantine.

Nursing homes should bar most visitors, the Centers for Medicare & Medicaid Services said Tuesday. A senior care facility near Seattle is the center of many coronavirus infections, including 18 deaths. That's a big reason for the high U.S. coronavirus death rate.

More universities, including Harvard, are switching to online-only classes.

Democratic presidential candidates Joe Biden and Bernie Sanders canceled separately campaign rallies in Cleveland, citing coronavirus concerns.

Worldwide Situation.....

Italy now has 10,149 coronavirus cases, with 631 dead. Italy went on a nationwide lockdown Monday, with people told not to leave home except for work or emergencies.

France, Spain and Germany all have more than 1,500 Covid-19 cases, with infections rising rapidly.

Iran officially has just over 8,000 coronavirus cases and 291 deaths, but the true figures may be far worse.

In contrast to Italy and Iran, South Korea coronavirus cases have generally been trending down in recent days after mass testing in the past few weeks. It has just 54 deaths out of 7,755 total cases.

Global coronavirus cases have topped 119,000, with more than 4,280 coronavirus deaths.

So.....

It is obviously far too early to call a bottom for the coronavirus stock market correction.

The trades that I have recommended are of good quality stock but are still being pummelled with the general market pullbacks.

This is one of the reasons for the short expiry date as at some stage soon we might expect the markets to eventually take on a more positive rally – not one day on and two off – and then we will be looking for a more positive playing field.

As mentioned in the articles.....

“Microsoft Inc Suffered From The Market Madness But An Opportunity Lies On The Horizon!”

and “Even Apple Inc Suffered From The Market Madness!”

.....even the top stocks can come unstuck and we can benefit from this!