Looks like a stock that trades in sympathy with the Homebuilders sector (which we're bullish on) is finally breaking out and ready for us to spring to action.

Wow.

What a run we're having in our Long May 100-strike calls in $BYND purchased on December 20th for $4.00 when the stock was trading below $77/share.

I wish I could say this was a regular occurrence, but of course we know this isn't true. However, this I know with absolute certainty: stepping up to the plate and taking our swings in trades with proper reward-to-risk setups, appropriate position size, and a plan for risk management again and again allows us to "get lucky" every once in a while. And sometimes it only takes one or two trades to make your month or your year. This $BYND trade certainly has a solid chance to become one of those year-makers.

Back to luck, there's a big difference between true "luck" like winning the lottery, and manufacturing your own luck through Best Practices. Which luck would you rather have?

I've been contacted a bunch by people who followed us into this trade and the general feeling I get from people is that they are scared -- scared of letting these enormous open profits get taken away by the evil Mr. Market.

Earlier this week, we entered a trade in Intercontinental Exchange $ICE because we're loving that stock and loving the sector. Well, there's more stocks setting up here that are worthy of our attention. And another beauty is setting up with low volatility pricing in relatively cheap calls.

So we've been keeping an eye of the Broker/Dealers space, and one of the names we have a close eye on has triggered our entry. Here's Bruni:

Intercontinental Exchange ($ICE) is consolidating tightly since August and now pressing up against all-time highs. A breakout above 95.50 would signal the continuation of its long-term uptrend and target 103.50 over the next 3-6 months.

Today, we're getting that breakout above 95.50:

There's a household name setting up for a bullish breakout to all-time highs sporting the lowest implied volatility in options prices in nearly three years! How do I not play this one?

These are my favorite types of setups and I get to play them simple.

Until further notice -- given to us by price action -- there is no reason to be on the hunt for bearish setups. There's no award handed out for being the first to catch the turn. More than likely, you'll needlessly exhaust a ton of capital -- both money and emotional -- taking hit after hit.

Let somebody else take the body blows.

One of the bullish setups JC and I discussed in the latest All Star Options monthly conference call is setting up and I feel like it's getting ready to spring into action.

This is the video recording of the January 2020 Conference Call for Members of All Star Options

Happy New Year! I don't know about you, but I couldn't be happier about kicking off 2020. Markets around the world are making new all time highs (including the US! -- I know, shocking for those of you fixated on War and Tariffs "news"), and volatility is surely to ramp up into the 2020 Comicon, er... I mean U.S. Election, resulting in tremendous swing trading opportunities for active traders like us.

So let's get to work!

During our recent All Star Options monthly conference call (link up soon), JC & I mentioned a few stocks I'm watching for potential entries.

One of those stocks is ready right now -- Oneok Inc. $OKE.

Welcome to 2020, where vision will not be in hindsight -- except when using past trends to inform decisions on future price action.

I don't know about you, but I'm pretty excited to kick off a year that is likely to see lots of volatility. Volatility is a traders best friend, when harnessed to our advantage. Sure, investors don't like volatility. But active traders thrive in it. And that's what we are here.

After that setup, I'm going to let you down with my first trade of the year being one to capture what we feel is some sideways action setting up in the metals space. LOL 

As January gets under way, it’s time to review positions with January options that remain open (haven’t already hit profit targets or been stopped out).

Most trades I put on for All Star Options tend to have a minimum duration of 30 days (short premium plays) and often as long as 6-8 months (for long premium plays). As options approach expiration, greeks like theta and gamma start to become my enemy and whipsaw my P/L. Therefore, as options and spreads get into the expiration month, my best practice is to put each position on notice — it’s time to take action.

This is the video recording and slides from the All Star Options Monthly Conference Call: December 30, 2020.

Tom Bruni is out with a bullish post on Beyond Meat $BYND that has whetted my appetite for an options trade.