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Jobs Data Sparks Bullish Rotation Into Beaten-Down Copper Names

by | Dec 8, 2023

Markets are getting a lift Friday after the latest round of employment figures edged out expectations for November.

The news has lead to a reversal in a sectors industries materials, with some big orders hitting the tape in a few of our old friends.

At the open we saw a nice rotation out of gold names and into some of the beaten down copper stocks with traders going after the out of the money Freeport-McMoran Inc. (NYSE: FCX) Jan. 19, 2024 $40 for around $115,000 in call premium!

And if that weren’t enough, buyers were also snatching up the Teck Resources Ltd. (NYSE: TECK)  Dec. 15 $38.5 strike calls for around $0.40 a contract, doubling to $0.80 in just over an hour — you love to see it!

But it’s not just the copper names on Wall Street’s hit list, we saw some bearish flow as we head into the weekend in a few automakers, most notably Stellantis NV (NYSE: STLA) — producers of Jeep, Chrysler and the Dodge Ram.

With the stock continuing to surge in the fourth quarter, the bears dropped a chunk of change with the idea that what goes up, must come down… Traders loaded up the truck with some long-dated June 21, 2024 $21 strike puts for more than $120,000 in premium!

You have to love the order flow we’re seeing this week!

Friday’s Top Order Flow: 

  • STLA Jun24 Strike: 21 Puts premium: $123,900 ASK BEARISH Trade Date: December 8, 2023 Trade Time: 10:00 am
  • FCX Jan24 Strike: 40 Calls premium: $117,708 ASK BULLISH Trade Date: December 8, 2023 Trade Time: 9:52 am
  • TECK Dec23 Strike: 38.5 Calls premium: $43,050 ASK BULLISH Trade Date: December 8, 2023 Trade Time: 9:35 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 QQQ Is About to Dump Its Weakest Stocks 

Not a lot of people know this, but on Dec. 8…

The Nasdaq 100 — also known by its ticker, QQQ — is expected to announce the stocks that will drop from the index…

Historically, when stocks get dropped from the index, they tumble pretty quickly…

Which can set up some pretty awesome trade opportunities…

And here’s what’s really crazy…

It’s not all that hard to figure out which stocks are likely to get dumped.

Under most circumstances, it’s usually the weakest performers…

And I know the weakest 15 stocks in the index…

And right here are the 15 weakest stocks in the QQQ…

It would not be a stretch to see the bottom six to seven names get dropped and trade lower…

My buddy, Jack Carter, loves going short on these types of stocks…

In fact, he calls it the “last tradable hack” in the stock market.

So join us for some live trading action at 1 p.m. ET on Friday, Dec. 8…

And the See Scanner in Action

WRITTEN BY<br>Lance Ippolito

Lance Ippolito

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