I did a video on Tuesday of last week on Super Micro Computer, when shares were at $28. I explained how it could potentially see a massive short squeeze…
Here’s the gist of what I said at the time (see the full video here):
SMCI was surging in what looked like an emotional move driven by short covering and retail FOMO. It was the exact opposite of Nvidia’s bearish setup from earlier in the week. SMCI’s recent action told a familiar story: traders trying to catch a falling knife, buying dips, getting stopped out, and eventually giving up as losses mounted.
With buyers tapped out, implied volatility spiking, and shorts loading up, the stock appeared primed for a massive short squeeze, potentially blowing through resistance levels or even filling the gap left by previous sell-offs.
For traders who saw the opportunity, the high implied volatility made options expensive — those premiums weren’t cheap. Smart money was countering this by going deep in-the-money on calls or converting them into spreads to cut costs. There was significant institutional action in play too, like a $1 million order on Jan 18 calls, which added weight to the bullish case. With multiple resistance levels in sight and shorts likely fueling the rally, SMCI looked poised for further explosive moves.
Today?
The stock was up 17% at one point, popping over $37 a share. It’s now up 68% over the past week — so be sure you watch these videos… and slap the ol’ thumbs up button to help me out with my YouTube algo!
So what’s cooking for today? Well…
Zoom (ZM) reports after the close, but if you attended my live session on Friday… Then you should have already closed out a banger of a trade in ZM!
We saw a super bullish order hit today, but it’s about $30 out of the money… And it doesn’t expire until June…
That’s way too long-dated for our taste, with market makers expecting a move of just $10.61 higher or lower on the announcement.
No thanks.
We also saw a sizable bet, over a half-million bucks in some in-the-money puts expiring this Friday at the $89 strike. Zoom’s had a pretty great few months, popping nearly 30% in that time.
So this trade could be looking for a downside move on the report, or he’s hedging against a sizable long position should the stock fall on earnings. As always, this play can and will go to $0 if wrong or if the stock doesn’t move enough because it’s a weekly expiration.
We also saw a bullish bet in Kohls (KSS), which reports before the open Tuesday, with a trader snagging the December $15.50 calls. These are deep in the money with shares trading around $18.35 this afternoon.
If we were feeling particularly bullish about the company’s earnings, we’d probably take a closer look at the $17.50 or $20 strike calls, with market makers expecting a move of $2.15 higher or lower.
Those are the two strikes in range of the market maker move with the best liquidity.
Finally, we also saw some December monthly, $17.50 calls in Macy’s, which also reports in the morning.
As always, respect that risk and trade accordingly!
Order Flow:
*This is for informational and educational purposes only. These are not official alerts issued by Lance, but rather some interesting orders picked by the team at Lance Ippolito Trading.
There is inherent risk in trading. Trade at your own risk.
Note: If no date is listed after the month, it’s the monthly expiration (third Friday).
The team at Lance Ippolito Trading
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 Ultimate Trading Session for Wednesday’s GDP Report
When the Q3 GDP report drops Wednesday, we’ll find out how strong America’s economic heartbeat really is.
This report could be a year-end game-changer for folks’ trading decisions…
Since it has the power to ignite explosive overnight opportunities.
And everybody likes waking up to more money in their account, right?
So check out this brand-new, FREE video called “America’s Earnings Event.”
It’s the ultimate trading prep session for this high-stakes week!
You’ll see Nate Tucci and I reveal:
✔ What the GDP report means for the markets.
✔ How to position yourself for a potential “pop or drop.”
✔ An overnight market phenomenon that could help you seize fast gains from this powerful catalyst.
And although we can’t promise results or against losses, you’ll watch as we trade this important report together.
These moves could happen fast, and the best opportunities won’t wait.
Check out America’s Earnings Event…
