🚨 I’ll be live at 2 p.m. ET 🚨
Last week’s penny puts in NKE are up 200% — we’ll go hunting for the next cheap opportunity that could 2x overnight and more [tap to join us]!
I know what you’re probably thinking…
Healthcare stocks, banks and Walmart aren’t exactly the names that get traders excited. But while everyone’s glued to high-flying tech, some of the market’s most boring sectors are quietly outperforming.
This looks like a classic flight-to-safety rotation.
Micron Technology (MU) and Sandisk (SNDK) have been getting hammered while Walmart (WMT), Costco Wholesale (COST) and bank stocks have held up.
JPMorgan Chase (JPM) even hit new highs. When growth stocks consolidate and traders get nervous, money often rotates into steadier businesses.
That’s important because I don’t want to get trapped in a volatile stock when its next move comes with a giant question mark. Expensive tech can fall quickly when momentum breaks or volatility rises.
Defensive companies may not deliver the same fireworks, but their durable demand and steadier cash flows can provide stability when the market gets choppy.
Why Healthcare Is Getting My Attention
MDT is a strong example of this rotation. The stock is moving higher while tech is flagging, and the appeal is simple — it’s a defensive healthcare business with recurring demand. One setup I’m banking on is whether momentum could carry MDT toward $95 heading into earnings.
The options math also shows why a boring stock can still produce an exciting trade. In one hypothetical setup involving the September expiration, $100 calls, the projected return could reach 566% if MDT makes the required move before expiration.
That’s a scenario, not a promise — options can expire worthless, so the entry price, expiration date and position size all matter.
I’m also watching Gilead Sciences (GILD) and Hims & Hers Health (HIMS). Traders seeking diversification can screen other medical-device, pharmaceutical and managed-care names for similar relative strength rather than betting everything on one company.
Let Volatility Confirm the Rotation
Nvidia (NVDA), MU and SNDK are consolidating or getting sold while defensive names grind higher. The next confirmation may come from the VIX. If VIX rises, and it is up 5% today but still barely above 15, it would signal more demand for protection and could strengthen the case for healthcare, consumer staples and bank stocks over speculative growth.
I still like aggressive opportunities but you can’t get married to them. When conditions change, the trade has to change too. Right now, the market is rewarding stability.
I’m not saying tech is dead. I’m saying the best risk-reward may be hiding in names most traders overlook. The sexy trades aren’t always the profitable ones — sometimes the strongest setups are sitting in the boring stuff.
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.
When you look at these plays, always take the market maker move into consideration.
You can be right on the direction but still lose money if the stock doesn’t move enough. That’s where the market maker move comes in clutch.
With puts, they’re often downside hedges in case a stock tanks, especially around earnings. The further out of the money they are, the more likely they are to be hedges.
Also be sure and check when the company’s earnings date is because many of the plays we post here are centered around earnings!
If a stock is really expensive, consider a spread to lower the cost.
And finally, always remember the golden rule when it comes to buying calls: Buy dips, sell rips — and don’t chase!
If a stock’s moved a ton already today, maybe wait for a pullback.
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 team at Lance Ippolito Trading, New Money Crew 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. Live at 2 PM ET Today: I’m Giving Away Options Trades Worth Less than $1
I’ve run the numbers, and these names could double…
And even triple overnight, and I want you to get in before the close.
