Don’t you just love it when a plan — or more of a lesson in this instance — comes together?
We discussed risk versus reward in Thursday’s edition of this newsletter, and highlighted what I considered to be a good risk-reward setup in Rivian (RVN).
Today, those Rivian calls we covered blasted off 50% on the open 😎
If you want to revisit why I felt it was a good setup, check out Thursday’s newsletter!
As for what’s on tap this fine Friday… Chip stocks are moving again, that’s for sure. And our old friend Advanced Micro Devices (AMD) saw a ton of action.
That’s likely because of Nvidia’s big AI conference next week, so I added an AMD call to the list below. Just recognize it’s a weekly expiration and can easily go to $0 — so respect that risk!
Even though earnings season is mostly done for this quarter, we still have some interesting companies left to report next week like Micron (MU) after the close Wednesday. MU could get chip stocks really moving again…
Xpeng (XPEV) reports before the open Tuesday, and a buyer stepped in to grab some in-the-money puts on Wednesday of this week that could be worth a look.
Pinduoduo (PDD) also reports next week and we saw some way out of the money puts ($80 strike with shares trading around $125) that are also dated January 2026, and some weekly $126 calls that might be worth a look.
Remember, puts are often hedges against long stock positions should the stock tank on earnings.
Both XPEV and PDD orders will go to $0 if wrong, so you know what to do (respect the risk!)…
Friday’s Top Order Flow:
- AMD Mar24 22nd Strike: 190 Calls premium: $404,190 ASK BULLISH
Trade Date: March 15, 2024 Trade Time: 10:52 am - XPEV Mar24 22nd Strike: 10 Puts premium: $218,782 ABOVE ASK BEARISH
Trade Date: March 13, 2024 Trade Time: 3:17 pm - PDD Mar24 22nd Strike: 126 Puts premium: $246,135 ASK BEARISH
Trade Date: March 13, 2024 Trade Time: 9:39 am
Note: If no date is listed after the month, it’s the monthly expiration (third Friday).
Lance Ippolito Trading Team
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. There’s Nothing I Love More Than a MASSIVE Overnight Mover
Did you catch our BIG win in Oracle (ORCL) this week?
I saw over $1.1M worth of calls piling in ahead of earnings Monday thanks to my “Overnight Options” scanner…
So I jumped in! And good thing I did…
Because we went on to nail one of our best trades of the year!*
This is EXACTLY what my “Overnight Options” scanner was made for!
Now of course not every trade is this big.. We’ve had plenty of small and medium winners, and there will be losers, which is all part of trading.
Check out my presentation to see what you need to look for to start using this powerful tool to help with your trading.
*Past performance is not indicative of any future results. Trade at your own risk. From 2/21/20 – 3/13/24 on live trades the win rate is 70.96%, the average return is 12.37% on the options over a 5 day average hold time.
