I think those boring old banks are about to have an earnings bonanza — join me at 2 p.m. ET on Tuesday for “Bank Blowout 2024”!
Although it feels like earnings season just ended — because it did — the first quarter 2024 season is underway this week, beginning with Delta on Wednesday and followed by the big, usually boring banks on Friday…
And we just so happened to see some small earnings bets trickle in for the biggest bank in the world, JPMorgan (JPM), which reports Friday before the open.
For the record, I’m not usually a fan of trading the big banks… I called them “usually boring” above for a reason — because they hardly move!
But I think that’s about to change for this particular quarter… which is in part what makes today’s orders so intriguing…
With shares trading around $198 into Monday afternoon, we saw two bullish orders in JPM ahead of its earnings date… the December 2025 expiration, $240 strike calls.
This order is of course WAY too long-dated for my taste. But we also caught an order in the weekly $210 strike calls to the tune of about $110K in premium…
This order is much more my speed… It’s short-dated — and the first order of the day, which I’ve had great success with — and CHEAP, ringing in around $0.43 a contract.
It is, however, about $12 out of the money with market makers expecting a move of $7.40 higher or lower by Friday. So a move to $210 is going to be tough. Not saying it’s impossible, but this isn’t the best setup.
Were I to consider it, I’d probably look closer to the money — this weekly order can and will go to $0 if wrong so respect that risk!
We also saw a bullish play in Meta Platforms (META) with a trader looking to buy the dip in what has been a very strong stock.
That’s all for today. Be sure to tune in tomorrow as the earnings flow is just getting started!
Monday’s Top Order Flow:
- JPM Dec25 Strike: 240 Calls premium: $128,150 ASK BULLISH
Trade Date: April 8, 2024 Trade Time: 10:38 am - JPM Apr24 26th Strike: 210 Calls premium: $109,981 ABOVE ASK BULLISH
Trade Date: April 8, 2024 Trade Time: 9:35 am - META Apr24 Strike: 550 Calls premium: $313,756 ABOVE ASK BULLISH
Trade Date: April 8, 2024 Trade Time: 12:17 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. Believe It or Not, I’m Actually Bullish on Banks!
With interest rates still high and the financial industry leading the way in 2024…
I believe the banks are poised to have a blowout earnings season this month…
Including JPMorgan, Wells Fargo, Citigroup and more.
And like always, I’ll look for a way to trade those names ahead of earnings.
Which is part of the reason I’m writing you this…
I wanted to let you know that at 2 p.m. ET on Tuesday, I’m hosting a special event called “Bank Blowout 2024.”
It’s an event dedicated to trading the earnings dates for these financial companies.
Right now, I’ve already marked up NINE bank stocks that look set to outperform.
And while I cannot promise future returns, or against losses, you’ll see their names and ticker symbols once you grab the free report my team just put together.
Get Into Stocks BEFORE They Move!
