The biggest week of earnings season has arrived, but volume is very light as the market takes a wait-and-see approach heading into the final full week before next Tuesday’s election.
As of 1 p.m. ET, volume in the S&P 500 ETF (SPY) is at 33% of its daily average, and the Nasdaq 100 (QQQ) is at 39% of its daily average.
We did however see a pretty monster short bet in Shake Shack (SHAK), which you don’t see hit the scanner all that often if ever.
If you’ve been following along for a while, then you may know that when an odd ticker hits the scanners, it catches our attention!
And SHAK is certainly that, generally appearing only during earnings season. And today we saw back-to-back orders totaling about $1.1 million in premium!
The first order that hit was for $971,474 in premium in the Nov. 1 expiration (so the weeklies), $110 strike puts with SHAK trading above $113.50 this afternoon.
These are a few bucks out of the money, and we generally only like ITM puts because OTM puts are often hedges against long positions should they tank on earnings.
And the second order was much closer to the money in the weekly $112 puts.
These are very interesting plays with SHAK at 52-week highs today, and could be worth a dice roll with market makers expecting an $11.04 move higher or lower following the report.
Oftentimes on earnings when you see a bullish chart like SHAK, we get a sell-off after the report. And if the chart looks like total crap, we often get an earnings squeeze higher.
This of course is NOT always the case, just more of a general observation of what we’ve been seeing.
We also saw some long bets in good ol’ Ford (F), which reports after the close today…
The first order to hit was in the weekly $11.50 calls, followed by a November monthly $11 call bet, and then a weekly $11 call.
Finally, I’m planning to do a few live trading sessions next week on Monday ahead of the election, Wednesday, and then again on Thursday right after the Fed’s next interest rate decision.
Stay tuned for invites here and in my FREE Telegram channel!
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.
- SHAK Nov24 1st Strike: 110 Puts premium: $971,474 ASK BEARISH
Trade Date: October 28, 2024 Trade Time: 11:41 am - SHAK Nov24 1st Strike: 112 Puts premium: $120,000 ASK BEARISH
Trade Date: October 28, 2024 Trade Time: 11:41 am
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.
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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. Don’t Be Late for Graham’s Encore Premiere of His Brand-New Newton Indicator!
If you missed us earlier today, I went live with Graham to see the big reveal of his brand-new Newton indicator…
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The setup is even stronger now, and Graham’s already mapped out what he thinks is the perfect options play to go with it.
As you may know, this is the same kind of signal that caught that 16% AAPL move when trading legend Michael Burry was shorting.
And while we cannot promise future returns or against losses…
He’s sharing this juicy new info…
