As we gear up for more earnings after the close, something has struck me this week…
One thing that always piques my interest in regard to potentially “good” orders hitting the scanner is when a ticker you hardly ever or never see comes across.
And this week, that stock is Restoration Hardware (RH), which is a home furnishings company. I don’t know much about it other than its CEO, Gary Friedman, is a heckuva trader.
So far this week, ahead of its Thursday morning earnings report, we’ve had four orders hit in this ticker you rarely ever see.
And this RH trader has been spot on! They bought puts on Monday and the next day, the stock was down $10. Then they bought calls on Tuesday and the next day (today), the stock rallied over $13.
And they’re back yet again ahead of earnings today…
And they’re hammering calls, both the April and May monthly expiration, $305 and $320 strike calls, respectively, with shares trading around the $295 level.
Market makers expect a move higher or lower of $35.78, so these calls are well within range.
Semtech (SMTC) also saw a bullish bet ahead of its report after the close Thursday.
So with that information what you will — just remember to respect the risk! These calls, especially the May ones, give a little more time in case they’re off.
Wednesday’s Top Order Flow:
- SMTC Jan25 Strike: 35 Calls premium: $138,400 ASK BULLISH Trade Date: March 27, 2024 Trade Time: 11:49 am
- RH May24 Strike: 320 Calls premium: $282,000 ASK BULLISH Trade Date: March 27, 2024 Trade Time: 10:48 am
- RH Apr24 5th Strike: 305 Calls premium: $324,370 ASK BULLISH Trade Date: March 27, 2024 Trade Time: 10:01 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.
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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. Join the Room NOW for 1 Long, 1 Short Bonus Trades
Sorry this is so last minute, but I love live trading session so much that I wanted to host another quick pop-up session…
If you followed my emails over the last few days, then you know my scanner has picked up around 500 orders over the past week… all bullish.
I’m going to share two more today with everyone that could be worth targeting, one long and one short, based on what I’m seeing.
While I cannot promise any future returns…
I can promise you that you’ll get your first News Flow Scanner trades FREE of charge during the event.
I’ll be on a few minutes before 3 p.m. ET.
