With Nvidia (NVDA) earnings on deck for after the close Wednesday, order flow had all but dried up in the ticker we likely see hit the News Flow Scanner more than any other…
Not only has NVDA flow dried up, but cousin stock Advanced Micro Devices (AMD) — which is about $800 a share cheaper — has also had very little in the way of big orders this week.
Through lunchtime Tuesday, we had seen just three AMD orders the past two days…
And after a big, fat ZERO NVDA orders on Monday and just one on Friday — WAY under the average — we finally got a couple of nibbles on Tuesday afternoon in one small and one fairly sizable order in the crown jewel of chip stocks…
First, NVDA is an insanely expensive stock. And trading options on it will cost you an arm and a leg. And if wrong, this is a trade that can and will go against you, fast…
So please, as always, respect that risk and don’t blow up your account. Put it on a watchlist and paper trade it. Because losing a trade like this would hurt…
On the bullish side, a big-money trader stepped in to buy the May 31 expiration, $1,035 strike calls to the tune of $608K in premium.
These were going for about $15.30 a contract and they’re about $85 out of the money with market makers expecting a move of $71.13 higher or lower this week, and a move around $89.40 by expiration next week.
We also saw an order in the $825 puts in the August monthly expiration. Puts are oftentimes downside protection in case a long position tanks on earnings. This one is way out of the money but does give quite a bit more time.
We also saw a Target (TGT) earnings bet on the bullish side that is directly in the money. It’s also expensive, close to $6.00 per contract. Walmart (WMT) saw a nice beat last week and market makers expect a move of $10.63 higher or lower for Target.
As I said above, respect that risk!
Tuesday’s Top Order Flow:
- NVDA May24 31st Strike: 1035 Calls premium: $608,000 ASK BULLISH
Trade Date: May 21, 2024 Trade Time: 11:44 am - NVDA Aug24 Strike: 825 Puts premium: $286,746 ABOVE ASK BEARISH
Trade Date: May 21, 2024 Trade Time: 11:59 am - TGT May24 24th Strike: 155 Calls premium: $235,410 ASK BULLISH
Trade Date: May 21, 2024 Trade Time: 12:04 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. 3 Brand-New Trade Opportunities for the Long Holiday Weekend
Take a look at this…
What you’re looking at is the result of trades of the last three years that I took right before a long holiday weekend.
Each weekend I took these trades was followed by a Monday where the markets were closed due to a holiday.
After posting 275 winning trades so far, I’ve noticed that giving trades an extra day to simmer has worked out great…
And that’s exactly what these long holiday weekends do.
This is part of the reason why I’m so excited for Memorial Day.
Because you see, I’ve found not one but THREE brand-new opportunities for the holiday weekend…
And while we cannot promise future returns or against losses, I’m sharing it live with my pal Jeffry Turnmire, an amazing trader in his own right, at 1 p.m. ET on Thursday.
Together, we’ll show you how we plan to trade them before this long holiday weekend!
The profits and performance shown are not typical, we make no future earnings claims, and you may lose money. From 5/23/24 through 8.13%, the average win rate is 70.2%. The average weighted rate of return on options trades was 8.13% over a 3 day average hold time.
