One of the biggest riser today was CRUS, after giveing a bullish forecast on sales off of AAPL’s new iPads and iPhones.  Its shares popped over +23%!  We logged in a +244% win on CRUS Aug 27 calls, which we bought last Thursday!  The market managed to book gains in July, thanks to the big 2-day rally last week.

We also had a nice month with many triple-digit gainers, including CRUS, GOOG, AAPL, BTU, APC, MA, and NFLX.  In the later part of July, we made some changes to our trading and starting trading less.  The high-frequency trading by the computers are generating a lot of noise and have changed the trading landscape, especially on intraday trades.  This especially affects intraday options trading.  So, we have tightened up on our trade criteria, and naturally are making less trades as a result.  The effect has been very positive, as we are now less stuck in front of the computer watching senseless intraday volatility and are making better trades with bigger profits!

The high-frequency trading are especially blatant during the first hour of trading.  Take a look at these 2 charts:
REGN (hourly)

After reporting strong earnings, REGN opened at $135 on 7/25, up $13 from 7/24 close.  But, it immediately fell back.  It went below 7/24 close and produced a swing of more than 17 points!  Then, what did it do in the next 2 days?  REGN ramped all the way back up and more, traded above $138!

ALXN

ALXN also delivered a blowout earnings report, opening $6 up from 7/24 close.  It also traded back down from open, obliterate its gains within the first hour.  Soon after that, the stock climbed back up again, trading all the way to $110!

So, if you’re actively trading, trying being a little less active in the morning.  Try not to be too eager to open new position right at open, unless the whole market has strong reason to move in one direction.  Even if on a gap-up, you’ll likely see a better price later.  If it doesn’t come down, after a big gap-up, it is probably too risky to chase anyway.  If you’re not in already, it’s probably better to look for other trades.

Here are the closed trades for July:

• 06:44 | HappyTrading CRUS ($36.15) Sold to Close 08C27 Aug 27 calls, at $9.30 +244%
• 07:50 | HappyTrading CRUS ($29.45) Sold to Close 08C27 Aug 27 calls, at $3.70 +37%
• 07:11 | Ecstatic Plays GOOG ($638.00) Sold to Close 0803C630 Aug 630 calls, at $12.00 +62%
• 12:52 | Ecstatic Plays CAT ($86.45) Sold to Close 08C82.5 Aug 86 calls, at $4.85 +47%
• 12:44 | Ecstatic Plays GOOG ($634.00) Sold to Close 0803C630 Aug 630 calls, at $9.60 +30%
• 11:09 | HappyTrading NOV ($73.80) Sold to Close 08C70 Aug 70 calls, at $4.60 +84%
• 10:49 | Ecstatic Plays GOOG ($631.00) Sold to Close 0803C620 Aug 620 calls, at $14.00 +180%
• 10:47 | Ecstatic Plays CAT ($86.30) Sold to Close 08C82.5 Aug 83 calls, at $4.65 +41%
• 10:40 | Ecstatic Plays GOOG ($632.60) Sold to Close 0803C620 Aug 620 calls, at $15.10 +202%
• 09:40 | Ecstatic Plays GOOG ($627.75) Sold to Close 0803C620 Aug 620 calls, at $11.60 +132%
• 07:35 | HappyTrading NOV ($72.90) Sold to Close 08C70 Aug 70 calls, at $4.00 +60%
• 07:18 | HappyTrading LULU ($58.40) Sold to Close 08P55 Aug 55 put, at $1.35 -39%
• 07:13 | HappyTrading FDX ($89.10) Sold to Close 08P87.5 Aug 88 put, at $1.30 -42%
• 10:15 | HappyTrading V ($121.90) Sold to Close 08P120 Aug 120 calls, at $2.70 +8%
• 08:33 | HappyTrading BTU ($19.10) Sold to Close 08P21 Aug 21 put, at $2.45 +121%
• 08:09 | HappyTrading BTU ($19.00) Sold to Close 08P21 Aug 21 put, at $2.50 +125%
• 07:04 | Ecstatic Plays CAT ($83.50) Sold to Close 0727C82.5 Jul 83 put, at $1.55 -21%
• 07:03 | Ecstatic Plays QCOM ($57.30) Sold to Close 08C55 Aug 55 calls, at $3.05 +13%
• 07:50 | Ecstatic Plays AAPL ($606.30) Sold to Close 0727C620 Jul 620 calls, at $9.35 +56%
• 11:53 | Ecstatic Plays AAPL ($604.20) Sold to Close 0727C620 Jul 620 calls, at $9.60 +60%
• 08:54 | HappyTrading CME ($50.58) Sold to Close 08P50 Aug 50 calls, at $1.30 +38%
• 07:32 | HappyTrading CME ($50.30) Sold to Close 08P50 Aug 50 put, at $1.50 +60%
• 11:42 | HappyTrading FDX ($90.35) Sold to Close 08C92.5 Aug 93 calls, at $1.09 -52%
• 08:03 | Ecstatic Plays AMZN ($228.00) Sold to Close 07C230 Jul 230 calls, at $0.45 -89%
• 09:34 | HappyTrading CRM ($139.56) Sold to Close 08C140 Aug 140 calls, at $7.30 +36%
• 06:50 | Ecstatic Plays POT ($45.80) Sold to Close 07C45 Jul 45 calls, at $0.90 +20%
• 06:48 | HappyTrading WYNN ($96.20) Sold to Close 07P100 Jul 100 put, at $4.00 +7%
• 06:40 | Ecstatic Plays QCOM ($58.60) Sold to Close 08C55 Aug 55 calls, at $4.20 +56%
• 07:55 | HappyTrading NAV ($24.80) Sold to Close 07P25 Jul 25 put, at $0.60 -83%
• 09:16 | HappyTrading NFLX ($81.50) Sold to Close 07C85 Jul 85 calls, at $0.60 -81%
• 07:46 | HappyTrading AAPL ($604.00) Sold to Close 07C615 Jul 615 calls, at $2.10 -53%
• 12:05 | HappyTrading APC ($91.00) Sold to Close 07C67.5 Jul 68 calls, at $3.81 +165%
• 10:05 | HappyTrading GS ($97.06) Sold to Close 07C95 Jul 95 calls, at $3.25 +8%
• 08:03 | HappyTrading APC ($70.10) Sold to Close 07C67.5 Jul 68 calls, at $3.15 +119%
• 08:37 | HappyTrading WYNN ($95.20) Sold to Close 07P100 Jul 100 put, at $5.50 +47%
• 06:59 | HappyTrading WYNN ($95.70) Sold to Close 07P100 Jul 100 put, at $5.15 +37%
• 10:22 | HappyTrading LULU ($54.90) Sold to Close 07P55 Jul 55 put, at $1.60 +14%
• 12:00 | HappyTrading CF ($193.10) Sold to Close 07P190 Jul 190 put, at $3.20 -24%
• 10:00 | HappyTrading EXPE ($45.70) Sold to Close 07P47 Jul 47 calls, at $1.90 +41%
• 07:33 | Ecstatic Plays MA ($417.00) Sold to Close 0713P420 Jul 420 put, at $6.38 +77%
• 07:06 | Ecstatic Plays CRM ($129.00) Sold to Close 0713P130 Jul 130 put, at $2.30 -21%
• 06:43 | Ecstatic Plays MA ($414.00) Sold to Close 0713P420 Jul 420 put, at $8.00 +122%
• 12:06 | HappyTrading EXPE ($45.50) Sold to Close 07P47 Jul 47 put, at $2.10 +56%
• 11:33 | HappyTrading AAPL ($611.00) Sold to Close 07C620 Jul 620 calls, at $8.20 -11%
• 12:44 | HappyTrading NAV ($24.30) Sold to Close 07P25 Jul 25 put, at $1.70 -6%
• 07:06 | HappyTrading MCP ($21.45) Sold to Close 07C21 Jul 21 calls, at $1.05 -50%
• 07:04 | HappyTrading RIG ($44.70) Sold to Close 07C45 Jul 45 calls, at $1.13 -23%
• 12:17 | Ecstatic Plays FFIV ($101.90) Sold to Close 0713C105 Jul 105 calls, at $1.00 -13%
• 12:11 | Ecstatic Plays GLD ($156.00) Sold to Close 07C158 Jul 158 calls, at $1.37 EXPIRED
• 12:00 | HappyTrading BIDU ($117.55) Sold to Close 07C115 Jul 115 calls, at $4.70 +21%
• 07:02 | HappyTrading NLFX ($77.30) Sold to Close 07C70 Jul 70 calls, at $8.00 +181%
• 09:59 | HappyTrading NFLX ($72.50) Sold to Close 07C70 Jul 70 calls, at $4.30 +51%
• 08:14 | HappyTrading V ($124.70) Sold to Close 07C125 Jul 125 calls, at $2.05 -8%
• 07:32 | HappyTrading APA ($86.75) Sold to Close 07C87.5 Jul 88 calls, at $2.00 -9%
• 06:56 | Ecstatic Plays GOOG ($582.30) Sold to Close 0706C580 Jul 580 calls, at $6.00 +50%
• 06:42 | Ecstatic Plays AAPL ($589.30) Sold to Close 0706C580 Jul 580 calls, at $11.50 +180%
• 11:53 | Ecstatic Plays AAPL ($583.66) Sold to Close 0706C580 Jul 580 calls, at $7.65 +87%
• 10:50 | HappyTrading DLTR ($53.60) Bought to Open 07C55 Jul 55 calls, at $0.80 EXPIRED
• 07:11 | Ecstatic Plays SINA ($51.50) Sold to Close 0706P50 Jul 50 put, at $0.48 -61%

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The market looked cautious ahead of Fed’s meeting tomorrow.  Then, on Thursday, we’ll hear from the ECB.  As expected, we’re seeing some profit-taking early this week.  But, the real movement will probably come on Thursday.  After the big 2-day gains last week, some profit-taking is healthy.  We’re hanging on to cash and taking profits with the market.  This market could still be gearing up for a big run.  Keep an eye on the Chinese market.  If the Shanghai Composite Index (SSEC) makes a positive turn, it’ll provide a solid support for a global rally.

Good night and HappyTrading! ™

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