We managed to knock another earnings play out of the park in this FREE newsletter, with Wednesday’s edition highlighting Macy’s premarket earnings report on Thursday.
We saw the November monthly expiration, $14 strike calls hit the News Flow Scanner, which were trading around $0.34 a contract when this newsletter hit your inboxes Wednesday.
And Thursday morning, with shares of M up about 13% at the open, those calls ripped about 50% higher to $0.56 before falling back to earth within 10 minutes.
I’m left kicking myself sometimes for getting out of trades too soon and missing out on bigger bounties because I often exit right at the opening pop or drop.
Which just goes to show…
The reason for that is exactly what happened to these Macy’s calls…
Sure, they were up big, but if anyone waited too long to exit, they would have made $0 and could have even lost money, even with the stock still up big (these calls were a little out of the money).
Which also goes to why I look at what the market makers’ implied move will be, and in-the-money calls or puts first for earnings plays. The stock shot up above $14 a share, but quickly settled back in the mid-$13 range, crushing the value of the $14 strike calls soon after the opening pop.
So what do we have in store for earnings today? Another retail name I’ve traded many times: Gap!
Gap reports after the close today, and with shares falling over 3.5% to around $13.50, a big-money bear scooped up about $126,000 worth of the November $15 puts — deep in the money.
So deep in the money one can actually go in the money for puts that cost about a third the price of the $15 strike puts.
But as always, earnings plays are dice rolls — trade accordingly!
Thursday’s Top Order Flow:
- GPS Nov23 Strike: 15 Puts premium: $126,000 ASK BEARISH
Trade Date: November 16, 2023 Trade Time: 11:53 am - SOFI Dec23 29th Strike: 6 Puts premium: $132,347 ABOVE ASK BEARISH
Trade Date: November 16, 2023 Trade Time: 11:07 am - CHGG Dec23 Strike: 10 Puts premium: $150,885 ASK BEARISH
Trade Date: November 16, 2023 Trade Time: 1:09 pm
Note: If no date is listed after the month, it’s the monthly expiration (third Friday).
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. Leverage Just ONE Pattern Before the Open
Everything that dictates a successful trade happens well BEFORE the 9:30 a.m. ET opening bell…
And it all starts with one pattern that only happens during premarket trading hours…
One that expert trader Tom Busby has personally traded with great success for the past three decades…
And has helped him END his trading day before most people get out of bed
It’s literally a GAME CHANGER if you ask me…
But I’ll let you form your own opinion…
