Graham will be live at 4 p.m. ET TODAY to talk all about Apple earnings on Thursday, and how he plans to trade it — join the earnings event here!
Earnings so far have been a mixed bag… But there’s a long, long way to go this quarter.
Markets are sinking Wednesday on the heels of monster reports from Advanced Micro Devices (AMD), which sent chip stock tumbling, and Amazon (AMZN), which sent the e-commerce giant higher by a couple of points.
Speaking of e-commerce, one company that’s reporting today after the close is a less traditional sort of e-commerce company because… it’s to buy or sell a car online.
I’m of course talking about Carvana (CVNA), and we’ve seen a bevy of longs and a couple of shorts peppering the News Flow Scanner.
And there are some interesting orders indeed…
First, let me point out that CVNA is a ticker I’ve had pretty good success with in the past.
I’ve made three official trades across my strategies, winning two and bagging a 23.4%* average return.
So it’s one of about 100 stocks I’ve had really good success trading. If you want to learn more about these 100 stocks and how I plan to trade them moving forward, I’ll be live for another encore presentation of my “Road to 100” challenge that everyone’s buzzing about.
I’ll also share my watchlist of longs and shorts ahead of our first official trade alert early next week!
We have indeed seen some BIG orders in CVNA this week, particularly on Monday, including a $1.3 million order, another for $726K and yet another for $580K.
These are all outsized for this particular ticker, which is what you want to see. But here’s the thing…
They’re all pretty long-dated. For instance, the $1.7M and $762K orders are both for the August monthly expiration. And the $580K order is for the January monthly expiration.
They’re also way above the current share price of about $84, with market makers expecting a move of about $13.90 higher or lower on earnings.
This isn’t my cup of tea — they’re also quite expensive. So here’s one option a trader could take, and it’s actually not trading options…
Instead of buying long-dated, way out-of-the-money calls, a trader could simply put a nice chunk of change into underlying shares with a tight stop loss in case things head south on earnings.
With outsized institutional bets like that hitting CVNA, it could be a good long-term, buy-and-hold bet.
The two weekly expiration plays we saw in CVNA were both puts in the $90 and $80 strikes. Puts are often hedges in case the stock should tank on earnings, though, one is deep in the money at the $90 strike. The $80 strike is also well within the market makers’ expected move.
Whatever the short-term outcome is for CVNA, there’s clearly some big money out there who believes it could be a strong stock from a longer-term perspective.
As always, respect the risk!
April 29, 2024
- CVNA Nov24 Strike: 125 Calls premium: $253,750 ASK BULLISH
Trade Date: April 29, 2024 Trade Time: 3:14 pm - CVNA Jan25 Strike: 125 Calls premium: $579,915 ASK BULLISH
Trade Date: April 29, 2024 Trade Time: 2:57 pm - CVNA May24 3rd Strike: 90 Puts premium: $202,560 ASK BEARISH
Trade Date: April 29, 2024 Trade Time: 11:25 am - CVNA Aug24 Strike: 110 Calls premium: $1,349,575 ASK BULLISH
Trade Date: April 29, 2024 Trade Time: 10:17 am - CVNA Aug24 Strike: 100 Calls premium: $726,000 ASK BULLISH
Trade Date: April 29, 2024 Trade Time: 10:11 am - CVNA Aug24 Strike: 105 Calls premium: $267,500 ASK BULLISH
Trade Date: April 29, 2024 Trade Time: 9:52 am
April 26, 2024
- CVNA May24 3rd Strike: 80 Puts premium: $194,400 ASK BEARISH
Trade Date: April 26, 2024 Trade Time: 3:21 pm
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.
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
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. The Cat’s Out of the Bag…
All week long, I’ve been talking about my new $25,000 trading account…
We’re going to push really hard to grow it over the next six, 12 and 24 months…
My goal is to push it above $100,000…
But what I didn’t mention was that it’s all a part of a brand-new venture called “The Trade Desk.”
It’s basically a way to copy every trade I make as I attempt to 4X this new $25K account…
And while I cannot promise future returns or against losses, if you want to check it out, I recommend you do so ASAP.
You’ll understand why in just a moment…
