Did you catch the move in Carvana (CVNA) this morning?!
We covered the stock in Wednesday’s edition of this newsletter, noting a number of unusual, outsized bets in the online auto marketplace and…. BANG — up almost 40% at one point Thursday!
So what do we have in store for today?
How about another ticker I’ve had tremendous success trading across my strategies over the past few years…
Digital payments company Block (SQ)!
As of this afternoon, we have yet to see any new orders. But we have seen three orders total in the past couple of trading days…
With shares of SQ trading between $68 and $69 after a Wednesday sell-off, the most interesting order is the May 10 expiration, $66 strike calls, which were bought Wednesday at the lows of the day for the stock.
Market makers expect a move of $7.41 higher or lower, this is certainly in play.
We also saw a couple of puts, but one of them is WAY out of the money at the $40 strike — which also doesn’t expire until March of next year… no thanks.
The second expires next Friday, but it’s deep in the money. Block bounced pretty hard after each of its last two earnings reports, so we shall see.
For another play, we included two orders in DraftKings (DKNG), which is down a couple of bucks since the May 2025 call — yikes, way too long-dated — order was placed on Tuesday.
The weekly expiration, $42.50 put is certainly in play.
But remember, these weekly expiration orders can and will go to $0 if wrong… respect that risk!
2:30 p.m. ET UPDATE!
We finally got an SQ order for today, and it’s a pretty big one:
- SQ May24 3rd Strike: 67 Puts premium: $313,117 ASK BEARISH
Trade Date: May 2, 2024 Trade Time: 2:29 pm
Top Order Flow:
- SQ May24 10th Strike: 66 Calls premium: $149,040 ASK BULLISH
Trade Date: May 1, 2024 Trade Time: 2:20 pm - SQ Mar25 Strike: 40 Puts premium: $119,739 ASK BEARISH
Trade Date: May 1, 2024 Trade Time: 12:57 pm - SQ May24 10th Strike: 75 Puts premium: $101,230 ASK BEARISH
Trade Date: April 30, 2024 Trade Time: 10:59 am - DKNG May24 3rd Strike: 42.5 Puts premium: $161,130 ASK BEARISH
Trade Date: May 2, 2024 Trade Time: 12:34 pm - DKNG May25 Strike: 45 Calls premium: $120,750 ASK BULLISH
Trade Date: April 30, 2024 Trade Time: 10:06 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. The Cat’s Out of the Bag…
All week long, I’ve been talking about my new $25,000 trading account…
We’re going to push really hard to grow it over the next six, 12 and 24 months…
My goal is to push it above $100,000…
But what I didn’t mention was that it’s all a part of a brand-new venture called “The Trade Desk.”
It’s basically a way to copy every trade I make as I attempt to 4X this new $25K account…
And while I cannot promise future returns or against losses, if you want to check it out, I recommend you do so ASAP.
You’ll understand why in just a moment…
