All good things must come to an end, and it finally happened… The semiconductor chip rally we’ve covered this week finally came to an abrupt end Friday on the heels of an earnings miss from Intel.
By the end of lunch on the East Coast, Intel was down over 12%, AMD and Nvidia were also both down on the day, and the ETF that tracks this sector, SMH, was down 2.3% after a meteoric rise of almost 40% the past three months.
Will this downturn continue?
With Super Micro Computer (SMCI) and AMD on deck for earnings next week, we will find out soon!
For other earnings plays coming up, we have SoFi before the open on Monday. And with shares trading around $7.60 Friday morning, we got an order for the Feb. 23 expiration, $8 strike calls.
Now, there’s a few things to like about this order: It’s massive at $501K in premium, it’s in the money, it’s short-dated, and it’s cheap — right around $0.70 a contract as of 1 p.m. ET on Friday.
These are all things to look for when perusing orders from the News Flow Scanner…
It is, however, an earnings bet. If wrong, it’s going to go to $0 or at least close to it on Monday.
Which is why I always say, you must respect the risk!
SoFi is also down about 25% the past month after rising 116% in 2023.
We also saw some Starbucks calls with the company reporting on Tuesday, and some longer-dated MARA calls — another 2023 darling that’s fallen on hard times of late.
Friday’s Top Order Flow:
- SOFI Feb24 23rd Strike: 8 Calls premium: $500,832 ASK BULLISH
Trade Date: January 26, 2024 Trade Time: 11:52 am - SBUX Feb24 2nd Strike: 96 Calls premium: $241,898 ASK BULLISH
Trade Date: January 26, 2024 Trade Time: 12:37 pm - MARA Mar24 1st Strike: 21.5 Calls premium: $106,250 ASK BULLISH
Trade Date: January 26, 2024 Trade Time: 9:43 am
Note: If no date is listed after the month, it’s the monthly expiration (third Friday).
Lance Ippolito Trading Team
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
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