Here’s the thing about market volatility…
When traders get nervous, they run toward safety. Right now, that flight to safety is showing up in boring names like Walmart (WMT), Costco Wholesale (COST) and the banks while higher-octane stocks such as Micron Technology (MU) and Sandisk (SNDK) get sold.
Healthcare can benefit from the same rotation…
Healthcare can benefit from the same rotation. That brings me to one name that isn’t getting hyped on social media and probably isn’t costing anyone $100,000 a month for the “inside pick.”
Just kidding…
I’m talking about Medtronic (MDT).
The Setup That’s Too Good to Ignore
We saw unusual options activity with 20,000 contracts in the September $100 calls at 75 to 85 cents, plus another 1,500 August monthly calls. That’s serious positioning.
The technicals also line up across the daily and weekly charts — all showing clean breakouts and buy signals. That matters because each time frame captures a different group of traders. When short-term momentum, intermediate positioning and the broader trend all point higher, the setup has more confirmation than a breakout on one chart alone.
Earnings are coming on Sept. 1, and this stock has shown it can move around earnings. Last time, it gapped from about $74 to $82 — a 12% to 13% move — after a double bottom shook out traders on both sides.
I’m looking for a run into earnings around $94 to $97, followed by a 10% earnings pop toward $105. From there, the all-time high near $106.33 becomes important.
Prior highs often act as psychological magnets because traders remember them, breakout buyers watch them and short sellers may cover as the price approaches.
The Math That Makes This Worth the Risk
If those September monthly expiration $100 calls rise from 75 cents to $5, that’s roughly a 566% return. If they dip to 50 cents on a pullback before making that move, the potential return reaches 10x, or 1,000%. Those outcomes are scenarios, not guarantees, and the options can expire worthless if the move never develops.
It may sound crazy for a boring healthcare stock, but that’s the point. Medtronic isn’t Palantir or AMD — the kind of high-volatility name that commands expensive options premiums.
Because traders don’t expect a huge move, the calls are relatively cheap. That creates an interesting risk-reward setup: exposure to an earnings-driven breakout without paying the premium typically attached to a momentum darling.
With September expiration, a clean multi-time-frame setup, defensive-sector demand and an earnings catalyst, Medtronic has several paths to work higher. If the broader market stays choppy, healthcare’s reputation for durable demand could attract even more capital.
It’s an undercover sleeper — and that’s exactly how I like them.
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.
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. Get My Best Trade Ideas LIVE at 3 O’clock
Our picks from yesterday are literally on fire!
Here’s the overnight stock move on the names we flagged yesterday…
Now those are just stock moves… if you played them with options, you should be sitting on an even bigger move!
On the other hand, if you didn’t catch those picks, you might want to join me at 3 p.m. ET to see what I’m cooking up today.
There’s still room for you to get in on my best trade ideas before the weekend, and that’s exactly what I’ll hand you today.
No trading guarantees, of course…
Granted, there were smaller wins, and those that would not have worked out…
But you’ll see how we’re able to tag overnight moves like these with ease and where the next set of big movers will come from.
Like I said, these trades will keep you busy until the weekend, so if you want in…
