Facebook Just Flipped the Market

After four days in a row of 1%-plus gains, the S&P 500 is down today.

Why? Earnings.

Early this week, I told you that it would only take one bad earnings report to flip this market on its head. And this morning, Facebook reported weaker-than-expected guidance for first-quarter revenue.

It was news that sent Facebook’s stock tumbling more than 23% lower on the open this morning.

But Facebook’s earnings are like a virus infecting the whole sector. Social media stocks Snap, Pinterest, and Twitter shares are all falling as I type.

There’s one large-cap tech stock, however, that still has to report – Amazon.

And FB’s poor report could be a window into what we can expect to hear from the biggest retailer in the U.S. this afternoon…

Yellow Traffic LightAMZN shares are already down more than 5% in anticipation of this afternoon’s report.

And whatever the retailer has to say is going to matter a lot in the market’s decision – are we headed toward another leg down

Or is the sell-off behind us?

We’re going to have to watch AMZN this afternoon to know the answer to that.

For now, my VIX light remains yellow – meaning wild moves ahead.

A Sparkling Safe-Haven: SLV

A big call-spread buyer in the iShares Silver Trust (NYSEARCA:SLV) came across my radar yesterday…

This trader bought 19,000 of the SLV July 15, 2022 $27 calls and sold 19,000 of the July 15, 2022 $31 calls against it, paying $361,000 total for the spread.

SLV can outperform in a red stock market, as people take their money out of stocks and put it into the precious metals.

And after FB’s earnings polluted the rest of the market, I’m starting to think that this trader is onto something.

SLV could move higher in the next few weeks.

By going long calls, you could piggyback this trade with a simple single leg that’s below $1.00 – a perfect asymmetric trade.

Facebook’s Loss Will Be Apple’s Gain – Literally

  1. Facebook Inc. (Nasdaq:FB)

I mean… duh.

Now that FB has reported earnings, it’s set for a post-report trade. I mean – look at the IV CRUSH on this thing!

FB IV Crush

That means options are getting really, really cheap on FB.

And I don’t think the crash is over yet – I’m definitely going to look for some sub-$1 puts on FB during today’s Profit Revolution earnings-trading session.

Click here if you want all the trade details.

FB’s loss is negative for most social media stocks – but it’s actually positive for Apple.

  1. Apple Inc. (Nasdaq:AAPL)

If you listened to FB’s earnings, then its loss was Apple’s gain – it blamed its slowing revenue on Apple’s privacy changes.

Now, AAPL is down right now. But this might be a chance to play a move back above $180.

  1. Penn National Gaming Inc. (Nasdaq:PENN)

Unlike FB, PENN reported strong earnings this morning, and the stock is actually up.

In fact, while FB pulls the social media sector down, PENN could pull the gambling space out of its funk.

DKNG seems to have bottomed out. We saw call buying in casinos over the last few days. And I might look to buy calls in this space today.

TOMORROW is your last chance to make money this week.

And 3-4PM is your final HOUR…

But it could also be your most profitable.

Because Kenny Glick and I are hosting 10X Trades: The Friday Close together in the main room…

Where we’ll trade the close for 1,000%-plus gains like I made at last Friday’s close.

I’ll break down that winner…

And look for another one LIVE on air.

Mark your calendar for this event below:

Friday: 10X Trades: The Friday Close 3:00 – 4:00 PM

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And I’ll see you tomorrow at 3PM sharp!

Mark Sebastian
Founder, Profit Takeover


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