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2 Stocks the Bulls and Bears Are Banking on for Earnings This Week

by | Apr 2, 2024

With earnings season winding down… for a couple of weeks until it begins again, at least… we’re getting to the bottom of the barrel. 

But we did see a couple of orders for upcoming reporters, including blue jeans and clothing heavyweight Levi’s (LEVI). 

With the market selling off hard Tuesday, Levi’s took a nosedive of more than 6% ahead of its report after the close on Wednesday. 

And with blood in the water and shares dipping over $1 to around $19, a bullish trader stepped in and grabbed the April monthly expiration, $20 strike calls. 

And he or she wasn’t the only one as there were well over 3,000 orders in this particular contract by lunchtime on the East Coast. 

Before Tuesday’s 6% slide, shares of LEVI were up 24% year to date and the chart has been on a bullish uptrend since late September. 

With market markers expecting a move of $1.23 higher or lower, this could be an opportunity to get some calls on the cheap (about $0.60 each as of 12:30 p.m. ET). 

Of course, you must respect the risk because they could sink fast if wrong. There is a little time to recover with the expiration still three Fridays away. 

We also saw a bearish bet in Acuity Brands (AYI) — which reports before the open Wednesday — that is also well within the market makers’ expected move of $20.24 higher or lower and shares trading around $261. 

Puts are often hedges against long positions should the stock tank on earnings, so respect the risk!

We also threw in a BIG bullish bet on Coinbase (COIN) for good measure. 

Tuesday’s Top Order Flow: 

  • LEVI Apr24 Strike: 20 Calls premium: $113,878 ASK BULLISH
    Trade Date: April 2, 2024 Trade Time: 10:08 am
  • AYI Apr24 Strike: 250 Puts premium: $189,540 ASK BEARISH
    Trade Date: April 2, 2024 Trade Time: 10:50 am
  • COIN Apr24 26th Strike: 285 Calls premium: $1,291,500 ASK BULLISH
    Trade Date: April 2, 2024 Trade Time: 12:27 pm

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. 

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WRITTEN BY<br>Lance Ippolito

Lance Ippolito

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