LIVE AT 7 PM: 2 PENNY CONTRACTS TRADING UNDER $1.00!
Earnings are a wild ride, and there’s a very important lesson to be gleaned from C3.AI’s (AI) report after the close Monday…
In yesterday’s newsletter, we covered two orders in AI for its report: the weekly expiration $45 call, and the Dec. 27 $44 call.
Shortly after the report, AI bounced about 17%, looking like a surefire big winner with the stock touching $48 a share.
Around 6:30 a.m. during premarket trading, it was still up 11% and well over $46 a share.
A mere three hours later at the open, the stock was down 11.25% to $37 a share, a 22% swing.
Say what?!
By lunchtime, the stock was back up over 6%, but the damage had been done to those call options. They can still end up profitable as the stock and the calls have rebounded nicely (the $44 call was flat, and the $45 was down 30% at 12:20 p.m.).
But still, this is just the latest example of how things can turn on a dime, and why you never count your chickens before they’re hatched when it comes to trading, and options trading especially.
And how we must always respect the risk of trading earnings or other catalyst events, especially with short-dated options. Trading is largely unpredictable.
That’s why you never trade more than you’re willing to lose, and you should always make sure each position is just a small percentage of your account.
That way, if something crazy happens — like a 22-point swing over three hours while the market’s closed — you can live to trade another day.
Meanwhile, the Darling Ingredients (DAR) calls we also covered yesterday were up 65% at one point today.
With that out of the way, let’s take a peek at what’s hitting for earnings today…
The biggest name being of course GameStop (GME). We’re keeping an eye on meme names and highly shorted stocks for bullish flow. We’d love to see a GME squeeze, which would spark a frenzy in these names across the board…
Sure, the stocks are mostly crap, but we’re not here to trade fundamentals, we’re here to trade stocks that are moving.
The only GME orders we’ve seen today by lunchtime were in the December monthly $30 puts, and the January $28 puts (both fairly sizable orders of $262K and $372K, respectively).
We didn’t catch any more earnings plays for this week aside from some extremely expensive Adobe (ADBE) and Costco (COST) flow. And since earnings are risky, we don’t mess with options for stocks that cost that much — I mean come on, Costco shares are almost $1,000 apiece….
So let’s stick with cheap names like Stellantis (STLA). A trader snagged the January $14 calls, which are going for around $0.60 with shares up 1.4%. The company is looking for a new CEO, which could send shares soaring if Wall Street likes the news whenever it’s announced.
Finally, I mentioned late last week that I like these quantum computing names for long stock positions, and we saw another call hit today in the D-Wave Quantum (QBTS) in the December $6 calls. Shares are up another 7% in this name today, so maybe keep an eye out for a pullback.
And be sure and join the stream tonight at 7 p.m. ET for more Penny Options Pro magic to see what else is hitting!
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.
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
Important Note: No one from The TradingPub team or any of its associated brands will ever contact you directly on Telegram.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. LIVE TONIGHT AT 7 PM ET: 2 Penny Stocks Under $1 a Contract
Earlier today, I went LIVE revealing TWO brand-new penny-priced opportunities… Both are currently trading well under a dollar, and if things unfold as I expect, they could see explosive moves at tomorrow’s open.
Since I believe they’re still tradeable tomorrow, I’m holding a special session at 7 p.m. ET today, Dec. 10, to recap today’s event and share these two penny-priced opportunities with you — completely FREE of charge!
While we cannot promise future returns or protect against losses, this is your chance to get in on these trades before they potentially move.
