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We Got a Big IBM Earnings Bet, But…

by | Jan 19, 2024

We’re officially heading into the thick of earnings season, so what’s cooking on the ol’ News Flow Scanner heading into the weekend? 

While I didn’t catch any big near-dated earnings bets on Friday, there was an order in a company reporting next week…

You’ve probably heard of this company, it’s of course one of those dinosaur Dow names that’s been around for 100 years…

  • International Business Machines (NYSE: IBM). 

IBM reports after the close on Wednesday, and the order came in the September monthly expiration, $195 strike calls to the tune of $117K in premium. 

First, let me say that this may well be a “good” order by a smart trader. But here’s the thing… 

It’s not my cup of tea. Like I said, this stock is boring. 

Five years ago on this date, it was trading for $120. Until December 2023, it basically traded sideways… for five years. 

While it has been on a tear the past few months, up 22%, this call option is way out of the money. 

Shares of IBM are right around $170.50 on Friday, so this is nearly $25 out of the money, which is a pretty big move, especially for a stock like this. Not to mention, it’s a pricey buy – right around $4.00.

That doesn’t mean this trader will be wrong, but there’s another thing that just doesn’t interest me…

The expiration date is nine months away. I don’t know about you guys, but I’m just not particularly interested in trading something nine months out. 

Even if it’s a great trade that works out perfectly, there are new trades each day that to me are a lot juicier. So for me, I’ll pass. 

As a trader, you’re in charge of clicking your own mouse. I’ll be clicking mine on short-dated, cheap options. 

Friday’s Top Order Flow: 

  • BABA Jan24 26th Strike: 65 Calls premium: $959,984 ASK BULLISH
    Trade Date: January 19, 2024 Trade Time: 12:12 pm
  • IBM Sep24 Strike: 195 Calls premium: $117,216 ASK BULLISH
    Trade Date: January 19, 2024 Trade Time: 10:19 am
  • INTC Feb24 Strike: 48 Puts premium: $209,615 ABOVE ASK BEARISH
    Trade Date: January 19, 2024 Trade Time: 2:03 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. Why I’m Still Super Bullish for 2024

Despite all the things you’ve read lately…

I’m surprisingly bullish on 2024…

The economy looks fairly stable…

  • Most of the worst-case scenarios have been priced in.
  • Inflation is moving back toward its desired levels.
  • Interest rate hikes have started to taper off.

And on top of that…

Many S&P 500 companies expect record profits in 2024…

All of this is pretty bullish for the stock market.

But I have a feeling many folks will miss out on what’s looking like a great year for stocks…

And I obviously don’t want that to happen…

So I want to direct your attention to something rather important…

It’s not an indicator…

It’s not a scanner…

But rather a complete Wall Street-Grade Trading System I started developing in 2016 just after I left a hedge fund.

It was designed to help me find and trade the market’s fastest-moving stocks. 

It’s called “Platform X.”

And It’s Launching Next Week

The profits and performance shown are not typical. We make no future earnings claims, and you may lose money. These trades expressed are from historical backtested data in order to demonstrate the potential of the system.

WRITTEN BY<br>Lance Ippolito

Lance Ippolito

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