With earnings season winding down, we still have a couple of interesting companies left to report this week, including Broadcom (AVGO) on Thursday, which could clue us in on the next move for chip stocks…
And speaking of chip stocks, it has NOT been a good day for these names!
The VanEck Semiconductor ETF (SMH) is down about 6.4% just after lunchtime on the East Coast… ouch!
AVGO itself is down about 5.6%… but more on this ticker in a minute. First, let’s take a look at good ol’ Hewlett Packard (HP).
With the Nasdaq as a whole down 2.6%, it’s not been a good day for chips or the rest of tech, for that matter.
HPE is down about 1.1% to about $19.15 a share. And on Friday morning, we saw two bullish orders that capture HPE’s earnings report after the close on Wednesday…
Which makes these orders bought Friday a bit cheaper… and what do we love most in trading?
Cheap options!
A trader(s) bought the September monthly expiration, $20 strike calls, caught on my Penny Options scanner, and then someone else (or maybe even the same person) swooped in about 15 minutes later to snag the Sept. 6, $19 calls.
With HPE expected to move about $1.55 up or down on the report, these two orders are within the expected move, which we like to see.
Will this trader(s) be right? Your guess is as good as ours, but we do like to see multiple orders in the same ticker, so these could be worth a look.
We also saw an order that captures earnings Thursday for UiPath (PATH), and the aforementioned AVGO…
The PATH order is way too long-dated for our taste, and it’s well out of the money. If we like PATH for earnings, we’d probably look at a short-dated, in the money play.
As far as AVGO… these were on the expensive side when bought Friday, but with chips taking a beating today, they’re down significantly. But they’re still within the market maker’s expected move of $9.41 higher or lower…
So these could be worth a look at a big discount.
Just remember, weekly options can and will go to $0 if wrong, or if the stock doesn’t move enough. So these are very risky. So what do we do in that regard?
Respect that risk and never trade more than we can afford to lose!
Order Flow:
*This is for informational and educational purposes only. These are not official alerts issued by Lance, but rather some interesting orders picked by the team at Lance Ippolito Trading.
There is inherent risk in trading. Trade at your own risk.
- PATH Feb25 Strike: 17 Calls premium: $114,291 ASK BULLISH
Trade Date: September 3, 2024 Trade Time: 10:11 am - HPE Sep24 6th Strike: 19 Calls premium: $120,000 ASK BULLISH
Trade Date: August 30, 2024 Trade Time: 9:46 am - HPE Sep24 Strike: 20 Calls premium $52,500 ASK BULLISH
Trade Date: August 30, 2024 Time: 9:30 am - AVGO Sep24 6th Strike: 162.5 Calls premium: $441,000 ASK BULLISH
Trade Date: September 3, 2024 Trade Time: 9:36 am - AVGO Sep24 6th Strike: 162.5 Calls premium: $116,000 ASK BULLISH
Trade Date: August 30, 2024 Trade Time: 3:55 pm
Note: If no date is listed after the month, it’s the monthly expiration (third Friday).
The team at Lance Ippolito Trading
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.
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