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Will SMCI, AMD Earnings Get Chip Stocks Back on Track?

by | Jan 29, 2024

We’ve been discussing semiconductor chip stocks a lot of late… It’s been the hottest sector in all of trading for much of the past few months.

As a matter of fact, keep your eyes peeled because I’m working on a juicy list of my top 9 chip stocks for February, coming soon!

Things finally hit a snag late last week when Intel earnings disappointed, taking a small bite out of the sector’s big recent gains. 

But there are plenty more catalysts en route to send things higher once again — or lower if the numbers are bad — starting today with Super Micro Computer (SMCI) earnings after the close. 

If you’ve been following along, then SMCI should be familiar to you. I’ve done two videos about it recently that you can find here on my YouTube page — be sure and smash that Subscribe button! 

This stock has been on an absolute tear, up nearly 100% in the past three months and over 70% in the past month alone. But that wasn’t exactly scaring the bulls away Monday…

By 1:30 p.m. ET, we had already seen four unusual orders hit the News Flow Scanner, and three of them were calls. 

Keep in mind, puts are often downside hedges in case the trader’s long position gets whacked by poor earnings. 

The longs are all in the weekly expiration $515, $550 and $560 calls, which would all require some hefty moves in the underlying to pay out. But market makers anticipate a $46.55 move higher or lower, so anything is possible!

As always, you must respect the risk because these will easily go to $0 if wrong or the move isn’t big enough. 

It’s also worth noting that all of these orders are insanely expensive…

Up next is AMD on Tuesday after the close, so stay tuned!

Included below are all of the SMCI orders for the day discussed above as of 1:30 p.m. ET, and a couple of other stocks for good measure. 

Monday’s Top Order Flow: 

  • SMCI Feb24 2nd Strike: 560 Calls premium: $106,380 ASK BULLISH
    Trade Date: January 29, 2024 Trade Time: 1:16 pm
  • SMCI Feb24 2nd Strike: 550 Calls premium: $128,340 ASK BULLISH
    Trade Date: January 29, 2024 Trade Time: 1:15 pm
  • SMCI Feb24 2nd Strike: 475 Puts premium: $417,640 ASK BEARISH
    Trade Date: January 29, 2024 Trade Time: 12:26 pm
  • SMCI Feb24 2nd Strike: 515 Calls premium: $169,600 ASK BULLISH
    Trade Date: January 29, 2024 Trade Time: 11:59 am
  • LCID Feb24 2nd Strike: 3 Calls premium: $521,219 ASK BULLISH
    Trade Date: January 29, 2024 Trade Time: 10:12 am
  • MARA Apr24 Strike: 20 Puts premium: $2,082,803 ABOVE ASK BEARISH
    Trade Date: January 29, 2024 Trade Time: 11:47 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. I Built a Stock Prediction System Based on the Real Reasons Stocks Move 

In 2016, I walked away from my hedge fund…

It was my first crack at being a “stay-at-home trader.”

I no longer had eight-plus monitors…

I didn’t have millions of dollars to trade with…

And I no longer had access to their highly specialized trading software…

But I knew what capabilities it had.

So, I took the backbone of that software and simplified it.

After many attempts and countless hours, I was able to distill it down to a one-screen trading platform…

At first, it might look a bit complicated…

But It’s Incredibly Straightforward

WRITTEN BY<br>Lance Ippolito

Lance Ippolito

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