Live Trading Earnings Season

We’re right at the start of second-quarter earnings. And from what I’ve seen so far – and what’s coming down the pike – it could be one of the biggest market-moving events of the year.

That’s why tomorrow, at 10:30 a.m. ET, I’m going live to show you how I trade earnings.

I’ll even release an earnings trade exclusively for Profit Takeover members. All you have to do is show up.

It’s all happening right here tomorrow at 10:30 – stay tuned.

AMC Is Running Out of Gas

I’m just going to say it – the once mighty, can’t be beat, record-beating stock AMC Entertainment Holdings Inc. (NYSE:AMC) is losing its luster.

Volume is declining fast – just take a look at the chart below:

As you can see, AMC’s stock price has started dropping. And that drop coincides with the volume bars on the bottom of the chart, which appear to be returning to early May lows.

Now, AMC is still in the news. But it’s not because the stock is booming, like it was last month.

This time, it’s because the company withdrew its request for 25 million new shares, a decision that shareholders were going to vote on at the end of July that would have allowed AMC to make some money off of its rising share price.

It was a decision meant to appease the retail traders that helped push AMC to parabolic levels. But it didn’t lift the stock any higher. Over the past month, AMC is down almost 20%.

So – what do you do?

Back when AMC was flying high, FOMO investors were piling in left and right. Is now the time to get out?

Or should you take up a bearish strategy to profit off AMC’s fall back to earth?

That’s what I’ll tell you today.

Here’s how to play AMC…

AMC is likely one of the most widely-held stocks after it hit headlines on every major news site this year.

Many people who had never owned stock, in fact, got into the market just to buy AMC.

Beginner traders and experts alike added this name to their portfolio, bought options on it, whatever – volume spiked and the stock spiked with it.

But if you hold this stock, I’m here to tell you that now may be the time to get out.

AMC is a meme stock, through and through. I mean, it went from a two buck stock to a 70 buck stock in less than a year.

But it’s not a jump we’ll likely see from this name again. So I say take the money and run…

And drop it right into a put spread.

A few weeks ago, I introduced you to bull call spreads. Well, put spreads are essentially the same thing – they just work in the opposite direction.

Like a long put, a bear put spread is a bearish strategy. But instead of buying one put, you’re buying and selling a put on the same underlying security with the same expiration date, but a different strike price.

The put you buy will be more expensive than the put you sell. But the premium you collect on the sold put will cut the price of the bought put – therefore lowering your risk.

Then, as AMC continues to fall, your put contracts should gain in value, handing you a nice profit on the declining stock.

Now, just like bull call spreads, bear put spreads require a higher level of options clearance. So I’ll never recommend an official Profit Takeover trade using this strategy.

That said, I like to give you extra trade ideas when I can, and a put spread is a great way to take advantage of AMC as it loses steam.

VIX Traffic Light

The VIX spiked to 18 yesterday.

But it was just that… a spike.

By the end of the day, it had already died. And this morning, we’re back down to 16.

My traffic light is still red, and I’m still forecasting a steep slide lower into the end of this month.

If my traffic light does change, then I’ll let you know. But for now, we’re still flashing red.

Mark’s Watchlist

  1. Apple Inc. (Nasdaq:AAPL)

We talked about the tech sector yesterday, and AAPL is one of my favorites in the bunch – especially after the big money flow we saw into the tech giant.

  1. Uber Technologies Inc. (NYSE:UBER)

UBER is another company that saw an impact money trade yesterday, with a possible 10K bull call spread at the weekly July 9 $51-$53 strikes:

UBER was already on my radar, but this trade cemented the company’s spot on my Watchlist.

  1. Advanced Micro Devices Inc. (Nasdaq:AMD)

AMD beat the market yesterday, gaining nearly 1.5% compared to the S&P’s 0.75%. But today, the stock is down over 2%, and the volatile movement is grabbing my attention.

  1. SPDR Gold Trust (NYSEARCA:GLD)

GLD has been steadily rising higher this month, up almost 2.5% since the end of June. The rise in the safe haven asset has caught my eye – and has me watching our UUP trade closely.

  1. Walt Disney Co. (NYSE:DIS)

The old and the new – that’s why I like DIS. This company dabbles in multiple sectors – travel, entertainment, media, etc. And it has the gas to return to its $203 high.

  1. Exxon Mobil Corp. (NYSE:XOM)

Oil, oil, oil – I’ve been talking about it for weeks and I’m not stopping now. It’s one of the most profitable sectors in the market right now. And XOM is one of the top stocks within that sector. This stock is up almost 45% year-to-date, and it’s not slowing down any time soon. Oil may be getting hit today, but I still see prices rising this summer.

We’re in the midst of a massive market mover – and that’s second-quarter earnings season.

Now, I trade earnings differently than most. And tomorrow at 10:30 a.m. ET, I’m going to release an earnings trade that you can’t miss.

It’s all happening right here. Stay tuned…

Mark Sebastian


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