Well that’s it, Nvidia (NVDA) earnings day has come and gone. The king of chip stocks is up big Thursday, over 10% after crushing earnings and announcing a 10-for-1 stock split, which will have options traders champing at the bit when it doesn’t cost an arm and a leg to buy even just one contract.
NVDA is the ticker that hits the ol’ News Flow Scanner most, though, action slowed considerably into the earnings date as premium skyrocketed along with the risk.
Now it feels like Pinduoduo (PDD) is the new NVDA with how often it’s hit the scanner of late.
PDD is up over 20% the past month, and traders have been hot on it, with four more orders coming in by lunchtime Thursday…
Ideally, I would dip buy this stock and its options IF it dips in the near future.
With PDD up nearly 8.5% at one point Thursday, both the bulls and bears were laying down massive bets. The four orders totaled a staggering $9.9 MILLION in premium!
This is also a China ADR stock, which can be easily manipulated if the CCP starts pulling any of its usual tricks. I swore these ADR stocks off at one point…
But I can’t ignore this amazing trading action for long, so we included all four PDD plays that hit the scanner before lunch. Just remember what I said about waiting for dips if you’re feeling bullish…
We also included a long-dated play in Taiwan Semiconductor (TSM) that catches its next earnings event in July. It would take a pretty big move higher, about $15 a share, but chip stocks are obviously super strong right now.
Finally, we included a potential rebound play in Boeing (BA) for next week, with shares falling over 6% today.
That’s a super short-dated play that can go against you in a hurry. So as always, respect that risk!
Top Order Flow:
- PDD May24 24th Strike: 162.5 Calls premium: $122,876 ASK BULLISH
Trade Date: May 23, 2024 Trade Time: 10:19 am - PDD Sep24 Strike: 160 Puts premium: $2,976,850 ASK BEARISH
Trade Date: May 23, 2024 Trade Time: 10:09 am - PDD Jul24 Strike: 150 Puts premium: $2,530,500 ASK BEARISH
Trade Date: May 23, 2024 Trade Time: 10:06 am - PDD Oct24 Strike: 160 Calls premium: $4,230,000 ASK BULLISH
Trade Date: May 23, 2024 Trade Time: 9:38 am - TSM Aug24 Strike: 175 Calls premium: $112,860 ASK BULLISH
Trade Date: May 23, 2024 Trade Time: 12:46 pm - BA May24 31st Strike: 185 Calls premium: $104,000 ASK BULLISH
Trade Date: May 23, 2024 Trade Time: 11:19 am
Note: If no date is listed after the month, it’s the monthly expiration (third Friday).
Lance Ippolito Trading Team
Lance doesn’t want the CCP spying on him, so you’ll never find him on TikTok. Same goes for other social media sites, which are filled with impersonators, scammers and crypto bros.
You can only find him on his personal YouTube Channel — smash that Subscribe button! https://www.youtube.com/@LanceIppolito
And in his private Telegram channel: https://t.me/+-gVwEIwGJhplMTgx
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. Ever Wonder Why Stocks Pop or Drop on Mondays?
With the strategy Jeffry and I are sharing, the market doesn’t have to be shooting higher in order for traders to be successful.
And here’s why…
A company rarely starts the trading week with BAD news…
They prefer to release a lot of their best news sometime over the weekend.
It allows them to start the trading week on a positive note, taking advantage of everyone jumping back in the market on Mondays…
Some traders refer to this as the “News Flow Theory.”
So, if you’ve ever wondered why so many stocks shoot up during premarket trading every Monday…
It’s because big news tends to break over the weekend.
But rest assured… The market doesn’t have to be shooting higher in order to be successful with this strategy.
You Have to See This!
The profits and performance shown are not typical, we make no future earnings claims, and you may lose money. From 9/24/21 through 5/23/24, the average win rate is 70.2%. The average weighted rate of return on options trades was 8.13% over a 3 day average hold time.
