With earnings season winding down but still some heavy hitters on deck — Nvidia (NVDA) reports next week! — we saw some interesting orders hitting Friday on the heels of Fed Chair Jerome Powell’s speech.
It didn’t take long after Powell spoke for the market to give back the gains it had made…
In fact, we were under the S&P 500’s (SPY) opening price by lunchtime on the East Coast. Though, we did see markets rally into the close.
And one thing we noticed shortly before lunchtime was a flurry of orders in Financial sector stocks that hit the Penny Options Scanner — all three are holdings of the Financial Select Sector ETF (XLF)…
Starting at 11:19 a.m. ET, we saw an order hit in Citi (C ), followed 2 minutes later by an order in Wells Fargo (WFC), and then an order in Morgan Stanley (MS) hit at 11:29…
On top of that, they’re all for the exact same expiration, the September monthly — with a rate cut expected next month — and they’re all a few bucks out of the money, which is a bit of a red flag because financial stocks don’t typically make big moves.
Still, these strikes are right at what market makers expect the stocks to move by the Sept. 20 expiration, and “odd” orders typically catch our attention.
So this could be something worth watching at the very least.
We also saw an earnings play for next week in a company called nCino (NCNO) that reports on Wednesday after the close…
This is a cloud-based software company for… banks, continuing today’s theme!
Remember to respect the risk and never trade more than you 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.
- C Sept24 Strike: 65 Calls premium: $70,618 ASK BULLISH
Trade Date: August 23, 2024 Trade Time: 11:19 am - WFC Sept24 Strike: 60 Calls premium: $91,300 ASK BULLISH
Trade Date: August 23, 2024 Trade Time: 11:22 am - MS Sept24 Strike: 106 Calls: 106 premium: $57,300 ABOVE ASK BULLISH
Trade Date: August 23, 2024 Trade Time: 11:29 am - NCNO Oct24 Strike: 35 Calls premium: $117,000 ASK BULLISH
Trade Date: August 22, 2024 Trade Time: 10:20 am
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.
P.S. The Options Market Is Undergoing a MASSIVE Shift
There’s been a subtle shift in the way the top options traders approach the market.
While everyone focuses on whale orders over $100K…
A new opportunity exists by tracking options flow on total premium under $100K and contracts priced under $1.00… as you can see below.
These are short-dated and fast-moving plays — day and swing trades you may hold no more than a couple of hours up to just a few days.
This is how I’ve been able to spot a bunch of winners like…
- TDOC, with a nice 7% gain.
- LYFT, which hit a 20% move.
- WBD, which enjoyed a 62% surge.
Of course, some wins were smaller and we’ve had a couple losses — and we cannot promise future returns or against losses…
But these “penny options” are becoming more and more popular with smart traders who like to get in and get out of trades quickly.
we make no future earnings claims, and you may lose money. From 5/13/24 through 7/24/24, the average win rate on live published trade alerts are 90%. The average rate of return on options trades was 53% over a 1.3 day average hold time.
