>>>Today’s Stonkamania session is all about smart trading heading into the end of the year. We’ll cover tax-loss harvesting and how pros use it, and we’ll do some live trading and lotto play hunting — the party starts at 1:30 PM ET!<<<
People have been asking me the same question all week: Lance, why are all these junk stocks going up?
Well, look at what the overall market’s doing right now. Absolutely nothing. The major indexes are just sitting there, flat as a pancake. So what are the traders doing?
They’re chasing returns in the crazy stocks, the “living la vida loca” names that are actually moving.
The Liquidity Migration Pattern
I’ve been watching this pattern develop, and it’s pretty straightforward when you break it down. When the indexes are asleep, the traders will creep. I don’t know if that’s the best analogy, but it captures what’s happening perfectly.
We’re seeing big moves in names like Intellia Therapeutics (NTLA) in biotech, USA Rare Earth (USAR), and AST SpaceMobile (ASTS).
Just look at all these orders from the past week or so…
The cannabis sector and Tilray-related plays also caught fire, bouncing over 20% on earnings Thursday.
These aren’t your blue-chip darlings…
These are the speculative names that can actually deliver the kind of returns traders are hunting for while the major indexes are chopping around.
The Volume-Liquidity Connection
Here’s why this is happening…
You’ve got to make a market somehow. In this low-volume environment, liquidity is everything. When traditional markets go dormant, that trading energy has to go somewhere, and it flows into the high-volatility names where unusual options activity is elevated.
My approach centers on identifying these volume transactions that cross above what I call the “knockout line” — that’s irregular buying activity that can lift share prices temporarily when overall market volume is thin.
The key is focusing on cheap options and avoiding expensive puts on these vertical movers. Instead, I’m looking at honey badger stocks — the consistent performers — and timing entries during those market maker liquidity gaps.
That’s why some of these smaller, speculative stocks are up so much. It’s not fundamental strength driving this…
It’s pure volume dynamics and trader behavior in a sleepy market environment.
If you want to try and catch some of these big movers in real time with the rest of us, drop on by Stonkamania at 1:30 p.m. ET!
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!
If a stock is really expensive, consider a spread to lower the cost.
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.
P.S. Gain 30-day Access to My Quick Flip Community for Just $97!
Forget the $2,997 retail price…
I’m offering up the chance to flip Wall Street’s biggest transactions into cash opportunities for just $97.
