The headlines are screaming about recent IPO stocks crashing and honestly, I get it…
The charts look brutal.
But when everyone fixates on the drop, that’s usually when the real opportunity starts building. Recently IPO’d names like Cerebras (CBRS), Reddit (RDDT) and SpaceX (SPCX) aren’t just oversold. They’re sitting in the exact kind of pressure zone that often leads to explosive reversals.
A lot of this comes down to simple mechanics. When too many traders pile into the short side, the downside eventually dries up and the slightest spark triggers a rush for the exits.
That’s the core of a short squeeze — heavy short interest, weakening downside momentum and a sudden burst of buying that forces shorts to cover at increasingly bad prices.
It’s violent, it’s fast and it can last longer than most people expect.
The Pattern Is Everywhere
If you look around the market, the same setup keeps repeating. Western Digital (WDC) got crushed before ripping higher. Micron Technology (MU) slid roughly 30% off the highs before flipping. FuelCell Energy (FCEL) and Bloom Energy (BE) were left for dead and then bounced hard the moment sellers ran out of gas.
These aren’t random one-off moves. This is positioning unwinding. This is supply exhaustion. This is what happens when sentiment gets too one-sided and a catalyst forces the market to rethink everything.
That’s why I’m watching how these names behave on down days. In choppy environments, some stocks follow a simple rhythm — down day, buy. Look at how Advanced Micro Devices (AMD) trades when it’s under pressure. The key is recognizing when weakness is exhaustion, not deterioration.
The Catalyst Is Coming
The real accelerant could be earnings. One strong report from a market heavyweight has the potential to flip sentiment across the entire tech complex. We’ve seen it before — a single unexpected beat from a name like Microsoft (MSFT) can wake everything up and send sidelined money rushing back into oversold names.
That’s why risk management matters. If a stock is down something like 10% in a session and the structure breaks, sometimes the best move is to step aside and avoid catching deeper downside. But when the selling is controlled and the setup holds, that’s often where the biggest upside comes from.
While everyone else is glued to crash narratives, I’m positioning for the reversal. These IPO names aren’t going to drift into oblivion…
They’re coiling. And when they unwind, the move is going to be sharp, fast and wide.
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
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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. Don’t Fall for Wall Street’s 31% Growth Trap
Wall Street wants you staring at one specific number right now: 31%.
According to official estimates, the Mag 7 tech giants are on track to post 31% year-over-year earnings growth for Q2.
On paper, that sounds like a giant green light to go out and buy everything in sight.
But take one look at the tape… and you’ll see the exact opposite happening.
Stock after stock in this group has been breaking down before they even open their mouths to report.
Because institutional smart money isn’t paying attention to last quarter’s revenue anymore.
They’re panicking over rising AI capital expenditures… and quietly dumping shares into every single rally.
If you jump into a trade just because a company “beats earnings” this week, you could watch your account take a hit after the closing bell.
The lazy old buy-and-hold rulebook is dead… The moniker is getting obsolete…
These seven stocks are decoupling fast.
A few of them are sitting on coiled springs ready to trigger violent squeeze rallies… Others are sitting on a trap door waiting to pull the market down with them.
Which is why Chris, Roger, Emily and I locked ourselves down to map out this entire earnings blitz before our live Roundtable on July 28th.
We put our complete game plan inside a brand-new free resource: The Mag 7 Earnings Power Rankings Playbook.
Inside this free guide, we break down:
- The Power Rankings: Our ranked list of all seven tech giants showing which ones hold the highest post-earnings profit potential right now… and which ones to avoid.
- The AI Spending Truth: What rising capital expenditures mean for the next leg of the AI trade.
- The Market Catalyst: The single earnings announcement on the calendar that carries enough weight to push the entire market higher… or trigger another move lower.
- The Two-Way Trade Setup: A simple way to target these explosive moves without having to guess whether the stock goes up or down.
We’re handing this Playbook over to you completely free the second you reserve your spot for our event this coming Tuesday
Don’t get caught on the wrong side of the tape this earnings season.
Tap below to grab your free Mag 7 Playbook and reserve your spot before July 28…
