Squeeze Play

Hey Influence Traders,

Movies like the “Big Short” and meme stocks such as GameStop (Ticker: GME) have certainly thrust short squeezes into the headlines.

Are they a new phenomenon that cropped up after the 2008 financial crisis?

NO!

While they’ve recently hit the news, shorts have been around for a hundred years.

And some of them make the Reddit/WallStreetBeats crowd look like amateurs.

But short squeezes are undoubtedly having a moment in the spotlight … so we’re digging in, and giving you the juice on short squeezes!

Join us today at 11 am EST (and the same time tomorrow!) to go deep on Squeeze Plays!

Heck, you might even find a squeeze play yourself … especially since they’ll be making one LIVE!

Click here for direct access. The action starts at 11 am EST!

The Antitrust Queen Cometh

Lina Kahn is in, and she’s gunning to get started!

The Senate confirmed Khan to the Federal Trade Commission, and President Biden even named her the Chair.

She is not a fan of big tech.

Khan’s confirmation is a sure sign of bipartisan skepticism of big tech – the Senate voted 69 to 28 to confirm.

Biden could nominate any of the commissioners as the Chair, so his nominating Khan – who is the youngest FTC chair in history – is further evidence of the administration’s intent to clamp down on big companies.

The agency investigates antitrust violations, deceptive trade practices, and data privacy lapses.

And since she’ll be leading the FTC, she will drive the agenda, and the word on K-Street is that she is going to crack down further on the industry’s giants.

Ms. Khan stated that she looks “forward to working with my colleagues to protect the public from corporate abuse.”

Khan has been a vocal critic of Amazon (Ticker: AMZN) and she will get cracks at going after Big Tech names like Facebook (Ticker: FB), Google (Ticker: GOOG), and Apple (Ticker: AAPL) if she believes that they are using their power to dominate new markets.

The agency is already investigating AMZN, and filed an antitrust lawsuit against FB last year.

Inflationary Power

The Federal Reserve downplayed inflationary fears and held interest rates steady on Wednesday.

Fed Chairman Powell opined that price increases would continue as the economy recovers from the pandemic lockdown, but that a dangerous inflation spiral is unlikely.

He also noted that the Fed would not be shy about using the tools at its disposal if “we see inflation expectations or inflation moving up in a way that is really materially above what we would see as consistent with our goals.”

Seems like the Fed wants to keep this market momentum in high gear.

PowerMoves

Andrew Giovinazzi and I continue to rock the #PowerMoves portfolio.

And General Electric (Ticker: GE) is humming.

We are still waiting on BWX Technologies (Ticker: BWXT) for now with a $0.65 bid on the BWXT July 16 65-strike calls.

The most interesting trade looks to be buying some cheap upside calls in Cleveland-Cliffs (Ticker: CLF) but we are waiting for $0.95 or better on the CLF July 16 26-strike calls.

      • We own puts in Ford (Ticker: F), Invesco QQQ Trust (Ticker: QQQ), Taiwan Semiconductor Mfg. (Ticker: TSM), and Palantir (Ticker: PLTR).
      • We own some calls in The Global X Cybersecurity ETF (Ticker: BUG), GE, TSM, and PLTR.
      • We have some short put spreads for theta in GE and CLF now.
      • We are back in CLF with a sale of five CLF July 16 15/21-strike put spreads at $0.96. This is a big chunk of capital, and we will adjust with a put if we need to. The implied volatility (IV) is super high in CLF, so we’re just looking for the $20 area to get back in.
      • BP Amoco (Ticker: BP)/QQQ is working, so we own the June 18 325-strike puts for a 5% credit on the initial position risk.
      • BUG is making a new high, and our four BUG Sept. 17 28-strike calls for $1.25 are up $0.25, or about 20%. The stock is illiquid, but the IV in the calls are cheap, so we thought this was the best way to play the Ransomware story. We’re looking for a double on the calls.
      • We own two GE Sept. 17 14-strike calls for a credit. We added a sale of two GE July 16 12/14-strike put spreads at $0.62. The idea is to help out the calls a bit in the premium area.
      • We bought two TSM July 21 125-strike calls for $2.51. TSM as a stock has been tough, stalling at $119 twice. TSM made its third breakout attempt, and failed, so I will most likely exit for a small loss and move on.
      • PLTR stock has stalled, and we have just one call here and two puts. The stock is stuck, and I will most likely just close the remaining calls this week. On the positive side, PLTR is just hanging around.

GE

GE is a diversified company that is also a play on green energy. We became interested in GE after it was announced that they would be building the wind turbines for a new farm off the Eastern Seaboard.

GE Aviation and Safran of France currently produce some of the most commonly used aircraft engines under their CFM International joint venture.

In a recent #PowerMove, it was announced that GE Aviation and Safran of France will develop a new commercial airplane engine that will be 20% more fuel efficient, and have 20% lower emissions. The project is called CFM Rise, and the plan is to have it go into service by the mid-2030s.

In addition to reducing fuel consumption by more than 20%, the engines produced will be compatible with sustainable aviation fuel and hydrogen.

GE is making #PowerMoves.

Cutting Through the Noise for You.

Frank Gregory

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