🚨 I’ll be on at 1:30 p.m. ET 🚨
If you haven’t gotten your hands on K.I.R.A. yet, today’s the day — everyone gets to see how it works and complimentary access to take it for a test drive yourself [tap to join us]!
When a stock halts on buyout news and nobody’s trading it, that’s exactly when I want to get aggressive.
That’s what happened yesterday with Bumble (BMBL) when it circuit-breaker halted on news the company is exploring a sale and hired Morgan Stanley (MS). The stock was sitting around $2.80-$2.85 — basically a penny stock at this point — and I immediately started loading up on the August $3 calls for around 30 to 40 cents.
This wasn’t a random swing. I’ve got a specific criteria for these micro-cap buyout plays and this one checked everything I needed. First, it has to be a 4-star rated flow signal on K.I.R.A. — and this one qualified without hesitation. Combine that with the setup and the opportunity became too good to pass up. Take a look…
Here’s why this trade grabbed my attention. This is a $355 million market cap name, which means it’s tiny. When 4,277 contracts on the $3 calls got bought on the ask, that’s not just noise — that’s 57x normal volume and 100% bullish flow. Someone’s making a big bet here and the math makes sense to me.
The Buyout Math That Changes Everything
Think about the risk-reward on this trade. If they take this thing private at $4 a share, you’re likely tripling your money on options. And if nothing happens? These options likely won’t collapse because the buyout speculation alone keeps volatility elevated.
And they’re cheap — right in my wheelhouse for this kind of risk.
This isn’t like a typical post-earnings fade where options bleed out. The buyout angle changes the game completely. Even if the stock doesn’t budge, these probably stay around 20 cents, bid just on the speculation.
The valuation backdrop only strengthens the case. Bumble went public at a $7 billion valuation and now it’s trading at a fraction of that, down 95% the past five years. The founder, Whitney Wolfe, previously sold $8.5 million in stock at around $5.50 back in August 2025.
Someone saw value there — and at these levels, so do I.
Now, I’ll be honest — I tried to get filled on more contracts but only got nine initially. The liquidity is terrible, which is both a problem and an opportunity. In a name this small, $427,000 in share equivalents is meaningful versus the liquidity.
Translation: this thing can move fast.
My Criteria for These Micro-Cap Buyout Plays
I don’t throw money at every tiny stock with buyout rumors. I’ve got strict rules. First, it needs that 4-star flow confirmation from K.I.R.A. Second, it has to be under $10. Third, calls only. Fourth, August expiration or sooner. And finally, I need enough liquidity to at least get positioned even if it’s rough around the edges.
The risk-reward here is exactly why these plays can be explosive. If these calls are sitting around 25 cents today, I’d grab whatever I can — using proper risk management, of course. That blend of volatility, leverage and speculation creates some of the best asymmetric setups in the market.
The whole thing reminds me of the Louisiana-Pacific (LPX) trade I hit the day before that doubled overnight. When you get positioned early on these micro-cap acquisition targets, the payoff can be huge.
And hey, at this point I might as well say it — feels like I’m becoming the new owner of Bumble. Me and Ryan Cohen. We can’t buy GameStop (GME) so we’re buying a dating app.
P.S. If you want to check out K.I.R.A, we’re giving 30 days access for everyone to take it for a test drive!
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.
