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A Potential Short Squeeze Play for Earnings Season

by | Oct 7, 2024

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Earnings season is here yet again, and order flow is slowly starting to pick up for this week’s reports…

We covered earnings bets Friday in CVS (CVS), Las Vegas Sands (LVS) and Delta (DAL), which all report over the next few weeks.

We saw more bullish flow Monday into CVS, but not in plays that capture its Nov. 6 earnings event. 

Of the companies set to report this week, we have a couple of plays lined up in Applied Digital Corp. (APLD), which reports Wednesday after the close, and JPMorgan (JPM) kicks things off for the big banks on Friday…

APLD is seeing a lot of bearish flow in the weekly and October monthly expiration, $7 and $6.50 strike puts with shares trading around $7.20 a pop as of this afternoon. 

Another trader on Friday snagged the weekly $207.50 calls for JPM, which is trading just under $211 today, so these are fairly deep in the money with an expected move of $6.01 higher or lower. 

As for the highly shorted stock, Applied Optoelectronics (AAOI) has a short float of about 30%. Shares are trading just above $15, with the trader grabbing the November $15 strike calls. 

If this thing takes off on earnings, we could see a short squeeze. 

As always, apply proper risk management and trade accordingly! 

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. 

  • JPM Oct24 11th Strike: 207.5 Calls premium: $126,000 ASK BULLISH
    Trade Date: October 4, 2024 Trade Time: 3:55 pm
  • AAOI Nov24 Strike: 15 Calls premium: $102,500 ASK BULLISH
    Trade Date: October 7, 2024 Trade Time: 12:51 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. 

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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. It’s Almost GO TIME!

Join the live room now to see the top 3 stocks Wall Street is piling into today — I’ll be live at 4 p.m. ET with Graham!

The way I see it, these tickers could soar by tomorrow’s open… and in the days leading up to the election.

Here’s your login link if you want to jump in early.

Graham and I will kick off as soon as the market closes at 4 o’clock!

See You There!

WRITTEN BY<br>Lance Ippolito

WRITTEN BY
Lance Ippolito

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