The Reins Report · 2026-W35

Market Structure · 2026-W35

Value rotation. Tech pulled back while healthcare, energy, and materials led. Booked BLDR at its stop, CNC still running, added a materials long and a small healthcare short.

Rotation week. Tech and industrials sold off (XLK -3.5%, XLI -3.4%) while the money moved into healthcare (+4.3%), energy (+2.8%), and materials (+1.9%). SPY -1.4%, VIX still calm at 15. Classic value-over-growth week.

BLDR hit its stop and I booked it at -50%. It rallied straight against my bear put, and the defined-risk structure did its job by capping the loss at a small, known number. CNC is still running at +30% and holds into its force-close this Friday. I added two picks, both defined-risk. First an FCX bull call to ride the materials and commodity rotation that is finally working, with excellent option liquidity. Second a small ZTS bear put, and this one I have to be honest about: the model loves it on broken momentum and bottom-decile estimate revisions, but I am shorting into a health-care sector that just ripped 4.3%, so it is a relative-weakness bet against a hot tape and I cut it to a single spread. About 23% deployed, plenty of room.

Carter Reins, Aspiring Fund Manager

Finance student and full time market obsessive. I run a systematic long/short options strategy: a model ranks the S&P 500 on eight factors, a volatility read picks the structure, and conviction sets the size. Every trade is defined risk with a hard max loss and a mechanical exit. Some weeks that is three ideas, some weeks one, some weeks none. I grade every call against the S&P 500. That's the whole game.

3 Yrs Trading Systematic L/S Defined Risk Options Conviction Sizing S&P 500 Benchmarked

📊 Track Record

Total Picks

Open

Closed

+0.43%

Cumulative P/L

+1.79%

S&P 500

-1.37%

Alpha vs SPY

📈 Open Positions

CNC

Health Care · Medium

LONG CALL Strong

Entry (Underlying)

$62.22

Current & P&L

$62.22 +0.0%

Target

$67.50

Stop

$59.00

$59.00 stop R/R 1.6:1 $67.50 target

CALL Option Details · Max Loss = Premium Paid

Strike

$62.50

Expiry

2026-09-18

Premium Paid

$1.91/share

Break-Even at Expiry

$64.41

IV Used

4400.0%

Leverage

2.0×

Max Loss

$1.91/share

Contract = 100 shares

×100

Delta Δ

0.350

Gamma Γ

0.0400

Theta / day Θ

-0.020

Vega / 1% IV ν

+0.040

Position size: 7.6% of account Days held: 21d Instrument: Call Entered: Aug 03, 2026

CNC is the model's top long again: composite 100, value 87th percentile, estimate revisions 100. Cheap IV (15th percentile) makes it a good time to buy a defined-risk bull call spread, and there is no earnings in the window. Corrected the strikes to the ones that actually trade (62.5/67.5, not the 62/68 the model printed).

Managed-care value plus the strongest estimate-revision trend in the book, into a clean no-earnings window with cheap options.

30-Day Price · CNC

Target $68 Entry $62 Stop $59

FCX

Materials · Medium

LONG CALL Moderate

Entry (Underlying)

$76.66

Current & P&L

$76.66 +0.0%

Target

$85.00

Stop

$72.00

$72.00 stop R/R 1.8:1 $85.00 target

CALL Option Details · Max Loss = Premium Paid

Strike

$75.00

Expiry

2026-10-16

Premium Paid

$3.82/share

Break-Even at Expiry

$78.82

IV Used

5400.0%

Leverage

2.0×

Max Loss

$3.82/share

Contract = 100 shares

×100

Delta Δ

0.350

Gamma Γ

0.0300

Theta / day Θ

-0.020

Vega / 1% IV ν

+0.050

Position size: 7.6% of account Days held: 0d Instrument: Call Entered: Aug 24, 2026

FCX is the model's top materials long: strong momentum (76th pct) and estimate revisions (84th pct), into a commodities/energy rotation that is finally working. Clean no-earnings window and excellent option liquidity (10/10 execution). Defined-risk bull call spread.

Copper/commodity strength plus a value rotation out of tech. No earnings in the window; tight, liquid options.

30-Day Price · FCX

Target $85 Entry $77 Stop $72

ZTS

Health Care · Medium

SHORT PUT Strong

Entry (Underlying)

$77.73

Current & P&L

$77.73 +0.0%

Target

$70.00

Stop

$82.00

$82.00 stop R/R 1.8:1 $70.00 target

PUT Option Details · Max Loss = Premium Paid

Strike

$80.00

Expiry

2026-10-16

Premium Paid

$4.12/share

Break-Even at Expiry

$75.88

IV Used

3700.0%

Leverage

2.0×

Max Loss

$4.12/share

Contract = 100 shares

×100

Delta Δ

-0.400

Gamma Γ

0.0300

Theta / day Θ

-0.020

Vega / 1% IV ν

+0.050

Position size: 8.2% of account Days held: 0d Instrument: Put Entered: Aug 24, 2026

ZTS is the model's strongest health-care short on its own factors: broken momentum (19th pct) and worst-decile estimate revisions. The catch is the sector just ripped (+4.3%), so this is a relative-weakness bet against a hot tape. Kept to one spread because of that headwind and a slightly wide bid-ask.

Negative revision trend and weak momentum, but fighting a health-care sector rally, so sized small and defined-risk.

30-Day Price · ZTS

Target $70 Entry $78 Stop $82

🌐 Cross-Asset Scoreboard

Instrument	Close	1W Chg	YTD Chg
Equities
SPY	765.72	-1.37%	+12.1%
QQQ	713.44	-2.41%	+16.4%
IWM	299.96	-1.68%	+20.6%
Sector ETFs
XLK (Tech)	183.31	-3.53%	+27.0%
XLF (Financials)	57.48	-1.17%	+4.6%
XLV (Health Care)	174.62	+4.33%	+12.3%
XLE (Energy)	63.64	+2.79%	+39.4%
XLI (Industrials)	180.25	-3.36%	+14.1%
XLY (Disc.)	118.02	-0.15%	-0.3%
XLP (Staples)	85.99	-0.12%	+10.7%
XLC (Comm.)	111.40	-1.37%	-4.7%
XLB (Materials)	53.54	+1.90%	+16.1%
XLRE (RE)	45.08	-0.42%	+11.6%
XLU (Utilities)	42.77	-3.48%	-0.9%
Vol & Credit
^VIX	15.13	+6.18%	+4.3%
TLT	82.05	+0.01%	-5.7%
HYG	79.61	-0.13%	-1.3%