Markets continued to fall into the weekend as traders continued wrestling with a fresh round of bad economic data and interest rate chatter from Federal Reserve officials.
Volatility has made this a rough tape to trade, which is why institutional buyers have zeroed in on names with reasons to move independently of the broader market, like earnings events.
And if you’ve been following my good friend Jeff Zananiri and myself on Crush the Open, then you already know we knocked it out of the park once again with DraftKings Inc. (Nasdaq: DKNG).
DraftKings crushed earnings after the bell Thursday, rocketing the stock more than 16.5% higher and sending the call options into orbit!
It just goes to show that even in a choppy market, there’s opportunity to leverage plays to our advantage by targeting major catalyst events and keeping a close eye on the “smart money”!
Friday saw institutional buyers chase several tech names to close the week, including an extremely long-term bet on Alibaba, whose earnings date is less than a week away…
Shares of the Amazon rival dropped as much as 3% after news of Chinese tech financier Bao Fan’s sudden disappearance.
With two hours left to trade, my scanners spotted some deep-pocketed degenerates snapping up more than 550 contracts of the Aug. 18 expiration, $110 strike calls for around $560,000 in premium!
But it wasn’t just small caps getting love from the big money…
- Five9 Inc. (Nasdaq: FIVN): March 17, $100 CALL.
- Kroger Co. (NYSE: KR): Feb. 24, $44 PUT.
- Conagra Brands Inc. (NYSE: CAG): Feb. 24, $35 PUT.
- JD.com Inc. (NYSE: JD): March 10, $56 CALL.
- NIO Inc. (NYSE: NIO): April 21, $10 PUT.
Check out my short video as I break down the day’s most unusual options order flow in no time flat!
It’s tough for me to say this…
But I am NOT bullish on stocks right now.
I’ve traded in my “perma-bull” status for a “bearish” one…
To be clear, I have very little faith in long-term investments at this moment in time…
Way too much money is leaving stocks to have any sort of bullish outlook.
It’s only a matter of time before many of our favorite names take the plunge deep into bear territory.
Yet at the same time, I’m excited about a totally new opportunity that’s opened as a result of this fleeting cash.
Something I consider a “Legitimate Investment Loophole” for regular traders.
Shadow Tracker With Lance Ippolitto
At Shadow Trader, we follow the big fish and what they’re buying. And we do that with my proprietary Shadow Scanner, which alerts me to big, institutional order flow through the day. Then we get in on these plays and follow the “smart money.”
The Shadow Tracker with Lance Ippolito is where I go over a few options trades that hit the Shadow Scanner each day, Monday through Thursday. I break down the trades with the sexiest order flow and tell you what could happen with those stocks by the next day’s opening bell.*
If you want in on these explosive options plays, be sure to sign up for Shadow Trader! We send entry, profit targets and exits directly to you via text and email alerts.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.