The market is experiencing extreme volatility, particularly with GameStop and other meme stocks that are squeezing amid low-volume trading.
So in today’s video, I dove into the frenzy surrounding GameStop (GME) and the resurgence of meme stock trading, capturing the essence of what it feels like when the stock market turns into a casino.
Let’s break down the chaos and see what the heck is happening with GameStop and its meme stock brethren.
Just a few weeks ago, I traded GameStop’s May 10 calls — bought at a dollar, sold some at a 40% gain, and then doubled down when they hit $2 a contract. Now, those same calls skyrocketed to $6.
During a live alert for Wiretap Alerts, I noticed that within just 10 minutes, GameStop rallied over 10%, and the calls I mentioned soared from 35% to 67% as the stock itself shot up by more than 30% on the day.
The underlying momentum reflects a broader shift back to meme stocks as crypto markets are faltering. This kind of trading euphoria often signals a market peak, so I urge caution.
Check out my video up top for a full rundown! As for what’s hitting the scanner ahead of earnings this week…
We saw hefty orders in Datadog (DDOG) and Upstart (UPST) puts, as well as calls in UPST and Crocs (CROX), and a put in Occidental Petroleum (OXY).
Be sure and check your market maker’s expected moves, and always respect the risk!
Short-dated options can and will go to $0 if wrong, and puts are oftentimes hedges against long stock positions should the stock tank on earnings!
Monday’s Top Order Flow:
- DDOG May24 10th Strike: 115 Puts premium: $773,780 ABOVE ASK BEARISH Trade Date: May 6, 2024 Trade Time: 9:44 am
- CROX May24 10th Strike: 120 Puts premium: $180,560 ASK BEARISH Trade Date: May 6, 2024 Trade Time: 9:41 am
- UPST May24 Strike: 24.5 Puts premium: $980,870 ASK BEARISH Trade Date: May 6, 2024 Trade Time: 12:53 pm
- UPST May24 10th Strike: 28 Calls premium: $100,686 ASK BULLISH Trade Date: May 6, 2024 Trade Time: 10:18 am
- OXY May24 24th Strike: 62 Puts premium: $110,097 ASK BEARISH Trade Date: May 6, 2024 Trade Time: 10:30 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.
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. His No. 1 Stock and Sector…
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