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I get asked about playing earnings all the time, and usually it’s about technicals, volatility or fundamentals. But when it comes to SentinelOne (S), there’s something else you need to know before you even think about placing a trade…
The leadership question.
I’m not one to sugarcoat things, so here’s the deal: I’ve done some homework on this company, and what I’ve found gives me pause. The CEO has a reputation problem that’s hard to ignore.
He’s been called out by short sellers for being what I’d call a “pumper.”
The False Buyout History That Keeps Me Cautious
Here’s where it gets interesting — and not in a good way. There were buyout rumors floating around this stock back in the day, and guess what?
None of them turned out to be true. Whether those came directly from management or just the rumor mill doesn’t matter much at this point.
What matters is the pattern of disappointment and the credibility gap it creates.
This is exactly the kind of due diligence that separates successful traders from those who get burned. You can have all the technical setups in the world, but if you’re dealing with management that has trust issues, you’re playing with fire.
Small Position, Big Lessons
Now, does this mean I’m completely writing off the opportunity — a recent $1.2 million order? Not necessarily.
I might consider getting long some calls for earnings, but we’re talking small position size here. The potential upside exists, but I’m not betting the farm on a company where the CEO may have a bad reputation.
This is one of those situations where character assessment becomes as important as your chart reading. Sometimes the best trade is the one you don’t make, especially when red flags about leadership are waving right in front of you.
Not only that, but the order — the $18 strike calls expiring March 2026 — is VERY long-dated. Order over a million bucks will catch my attention…
But the company reports after the close Thursday, so I’d probably look at something far more short-dated.
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.
When you look at these plays, always take the market maker move into consideration.
You can be right on the direction but still lose money if the stock doesn’t move enough. That’s where the market maker move comes in clutch.
With puts, they’re often downside hedges in case a stock tanks, especially around earnings. The further out of the money they are, the more likely they are to be hedges.
Also be sure and check when the company’s earnings date is because many of the plays we post here are centered around earnings!
And finally, always remember the golden rule when it comes to buying calls: Buy dips, sell rips — and don’t chase!
If a stock’s moved a ton already today, maybe wait for a pullback.
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
Important Note: No one from The TradingPub team or any of its associated brands will ever contact you directly on Telegram.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
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