Earnings action is coming fast and furious! Come trade the close with me, LIVE at 3:30 p.m. ET TODAY — just go here!
We kicked off another massive week of earnings, and the orders are peppering the News Flow Scanner…
Speaking of the scanner, I want to cover an important lesson in a couple of GOOG trades that hit today.
Google parent Alphabet (Class A: GOOGL; Class C: GOOG) reports earnings after the close on Thursday alongside other heavyweights like Microsoft (MSFT) and Intel (INTC).
The biggest question we get about the scanner is how to differentiate the higher-probability orders from the ones I don’t love as much?
Well, let’s take a look at two GOOG orders…
At 12:21 p.m. ET, we saw two GOOG orders in the same expiration date, the May monthly, but with different strike prices: the $157.50 and the $162.50 calls.
The fact that these two orders came in at the same time with the same expiration date but different strikes tells me this is most likely a spread trade.
And what do I do with spreads? I ignore them!
I’m looking for straight directional orders, and this is a much more conservative play. Now, that doesn’t mean a trader couldn’t do a straight up directional play on this.
We also saw a pretty big GOOGL put order on Monday to the tune of $384K in premium, but they’re the June 2025 expiration, $180 strike…
No thanks — way too long-dated for my taste.
Finally, we also saw an April 26, $150 strike put, but that could very well be a hedge against a long stock position should it tank on earnings. As of right now today, I’d probably stay away from this trade altogether and look for something with a little more sure footing underneath.
We also saw a couple of Spotify (SPOT) plays Monday with the streaming giant reporting before the open Tuesday, so check out the rest of the top flow below — just remember what I said about puts above!
Monday’s Top Order Flow:
- GOOG May24 Strike: 157.5 Calls premium: $141,780 ASK BULLISH
Trade Date: April 22, 2024 Trade Time: 12:21 pm - GOOG May24 Strike: 162.5 Calls premium: $107,880 ASK BULLISH
Trade Date: April 22, 2024 Trade Time: 12:21 pm - GOOGL Apr24 26th Strike: 150 Puts premium: $105,500 ASK BEARISH
Trade Date: April 22, 2024 Trade Time: 12:00 pm - GOOG Nov24 Strike: 165 Puts premium: $175,760 ASK BEARISH
Trade Date: April 22, 2024 Trade Time: 11:24 am - SPOT Apr24 26th Strike: 247.5 Puts premium: $163,660 ASK BEARISH
Trade Date: April 22, 2024 Trade Time: 12:13 pm - SPOT Apr24 26th Strike: 250 Puts premium: $122,130 ASK BEARISH
Trade Date: April 22, 2024 Trade Time: 10:52 am
Note: If no date is listed after the month, it’s the monthly expiration (third Friday).
Lance Ippolito Trading Team
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. Did You Miss This Morning’s Session and NIO Trade?
If you missed this morning’s live session, check this out…
Some juicy, cheap NIO calls hit and we took a ride. By the time lunch was over, those calls were up 30% 😎
While we can’t promise future returns like this or against losses, I’ll be live with members again to trade the close at 3:30 p.m. ET TODAY.
If you want to join the earnings action…
