Many of the big boys are behind us, but there’s still a massive slate of companies reporting earnings in the coming weeks…
And next week is jam-packed! Check this out…
This season has been a bit on the dicey side, with companies falling hard even after reporting strong numbers — but weak forward guidance. And you never know when a Trump tweet about tariffs can send things suddenly spiraling, just like we’ve seen the past two Fridays.
Looking back to Thursday’s orders, we got a nice pop today from SoFi (SOFI), but then Newell Brands (NWL) tanked 30% today while Pinterest (PINS) soared…
I said this about PINS yesterday and much to my dismay, I nailed this prediction and my puts cratered:
However, keep in mind that we’ve seen big orders go bad because big PINS orders have missed before. I’m going with a 2-lot in the $34 weekly puts. Why just a 2-lot? Because I fully expect the stock to go up and these to go to $0 — but we love rolling the dice around here!
That’s why it’s called “rolling the dice,” because you just never know, as PINS jumped over 22% at one point today. So my 2-lot went down the crapper.
As they say, you can’t win’em all…
But that’s not going to stop us from rolling the dice again because the stock market is an endless supply of opportunities — so long as you respect the risk and don’t blow up your account.
And today, let’s take a look first at Uber’s (UBER) little brother, Lyft (LYFT)…
Both Uber and Lyft are up big today, about 9.5% and 4.6%, respectively, and LYFT is set to report Tuesday.
A bearish trader swooped in and grabbed the Feb. 14 expiration, $13.50 strike puts, possibly looking for a reversion play after today’s run-up. With momentum strong, we’d wait until right before the close today and take a look at these again.
They could be ripe for a drop on the open Monday, and quick flip ahead of earnings.
Up next is ON Semiconductor (ON), which reports before the open Monday. Chip stocks have taken a beating of late including ON, which is down 30% the past three months. A trader snagged the Feb. 14 $51 puts with shares sinking to $51 this afternoon.
This isn’t a huge amount of premium, but it is right smack in the money. Just beware… puts are often hedges against a long position in case it tanks on earnings. However, ON has already tanked over the past three months…
And the past year and a half, for that matter. So it’s hard to imagine anyone who’s bought this stock since the end of July 2023 being up very much and needing to protect their gains.
ON was $106 a share back on July 28, 2023. Now it’s under $51.
Finally, we have Nebius Group (NBIS), which doesn’t report until Feb. 19. I mentioned in my Options Pit Telegram channel that I’d look to get into these near the close today.
Of course, that was before this massive pop from noon on today…
If this trade floats your boat, maybe wait for a pullback…
That’s all for this week but we’ll be back at it on Monday!
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
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
Important Note: No one from The TradingPub team or any of its associated brands will ever contact you directly on Telegram.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. Have You Ever Wanted to Trade Like the Executives and Politicians?
Snag this deal, and then you’ll be able to…
But you need to act soon, the special pricing ends soon…
