We went in-depth Wednesday into the power of “cheap” penny options, and wouldn’t you know, another play that had been gaining traction this week blasted off today…
We had been seeing bullish flow into the weekly expiration, $11 and $12 strike calls in Riot Platforms (RIOT).
And this morning, news broke that an activist investor had taken a large position in the Bitcoin miner, sending shares sharply higher, as much as 14% right before the open, and 11.5% by lunchtime.
And those $11 calls that were trading for under $1.00 at the time of purchase surged to $2.10, and the weekly $12 calls that were a measly $0.35 at the time of purchase topped $1.16 — BANG!
Once again, the power of a few pennies has ended with an outstanding ROI.
Keep in mind that not every trade works out like this. And as always, there is risk involved. There are smaller winners and, yes, bigger winners — check out this WBA 🚀 from this week that may have been the trade of the year!
The Penny Options Dashboard has absolutely become one of my favorite ways to trade.
As for today’s flow…
Earnings season is winding down (before it picks right back up in about a month). The only interesting tickers reporting today are expensive stocks like Broadcom (AVGO) and Costco (COST), and we’re looking for cheaper plays, especially when it comes to the high risk of weekly options.
Speaking of cheap… one order that caught our eye just before lunchtime was in the Archer Aviation (ACHR) weekly $7 calls. With shares down 5.5%, this trader is looking for a quick reversal, so it could be worth a look as an overnight play.
ACHR is a name that rarely if ever hits the scanner, so that piques our interest along with the $0.25-per-contract price tag. Not only that, but another order in the Dec. 27 $7.50 calls hit at 10:30 this morning. And an order in the weekly $8 calls hit late Wednesday.
A wise move might be to see how much these are trading for right before the close. If they haven’t moved yet, they might be decent for a quick overnight flip if they get a pop on the open Friday.
As usual, be aware that this could easily go to $0 since they expire tomorrow. And this could be the same trader doubling and tripling down on a losing position — they could just be flat out wrong about this.
r maybe not — you just never know, and nothing is ever guaranteed in trading.
Implied volatility is also fairly high in these, so another move if you really like this idea would be to buy some common stock instead of options — which is always something you can do with these plays. No one said you HAVE to buy options.
We’ve also seen a flurry of bullish activity in Intel (INTC), with shares popping as much as 3% this morning. These traders are likely looking for a cheaper way to play AVGO earnings.
If we really liked these plays, we would choose a strike that’s within the market makers’ expected move of $1.78 higher or lower by that Dec. 27 expiration.
That’s it for now. Drop on by the Zoom room at 2:30 p.m. and we’ll see what’s hitting the scanner then, and go over some orders together!
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
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
I’m walking everyone through how we caught this week’s winners so far…
That lightning-fast 38% gain on Disney in just an hour… And the massive 381% overnight return on WBA…
Granted, there were smaller wins and those that did not work out and we cannot promise future returns or against losses…
But I’ve also got a brand-new penny-priced opportunity to share starting at 2:30 p.m. ET.
More importantly, I’ll show you how our dashboard filters through thousands of options to find these specific setups – the ones priced under a dollar with next-day explosive potential.
The performance shown is not typical, and you may lose money. The examples displayed are recent trade ideas found in real-time. There were smaller wins and those that did not work out. Results will vary for each individual user.
