Mega-Cap Earnings Could Reverse the Market
Finally, we’re teetering on a yellow VIX light.
Futures are back in a contango. The VVIX is dropping. And volatility seems to be deflating.
But we’re not there quite yet – my light is still green today…
Because there’s a major market catalyst on the horizon that could change everything – and that’s megacap earnings.
All three of these FAANG stocks report this week.
If earnings are decent, we could see a sub-20 VIX by the end of the week.
But if they’re bad, we could see volatility ricochet higher again.
That’s why we need to be able to play both sides of the market.
With my volatility trading plan, you can see the chance to profit before and after earnings… whether they take the stock up or down.
Fade the Run in XOM & HOOD
All three of these stocks are shooting higher post-earnings – but I’m not looking to play that bullish trend on all of them.
- United Parcel Service Inc. (NYSE:UPS)
- Exxon Mobil Corp. (NYSE:XOM)
- Robinhood Markets Inc. ((Nasdaq:HOOD)
UPS blew the door off earnings this morning, reporting record numbers and forecasting 2022 revenue that was well above expectations. They also increased their quarterly dividend by almost 50%, shooting the stock 14% higher as I type.
This has an effect on all transportation stocks across the industry, which will bleed bullish into rails as well.
I want to wait and see how options trade, but this one is on my radar for a post-earnings bullish trade.
XOM topped earning estimates as well this morning, reporting an 80% increase in revenue as oil and gas prices rose.
The stock is soaring this morning… but it may have gone too far too fast. And I think we could see a fade here – so I might look to buy puts on this rising name before it reverses.
HOOD has had a nice run post-earnings, up 7.7% in the past five trading days:
HOOD Jan-Feb 2022
But the gig might be up. I’m looking to buy puts to play a reversal in HOOD.
10X Your Cash on Friday’s Close
Friday’s Profit Revolution trading session was one to remember.
I dropped an official recommendation – a butterfly on SPX – that profited over 1,000% for viewers that were there.
And now, I’m opening the doors to everyone.
See, the last trading hour of the week actually has the potential to be the most profitable trading hour of the week.
And this Friday, from 3PM to 4PM ET, I’m hosting 10X Trades: The Friday Close – an hour-long event where I’ll show you how to trade the close…
And drop another trade recommendation that could see returns just like my members saw last week.
Get ahead of the game – and add this event to your calendar below!
Big Money Is Back on This Video Game Merger
Remember the Zynga Inc. (Nasdaq:ZNGA) and Take Two Interactive Software Inc. (Nasdaq:TTWO) merger?
Last month, we saw a big-money trade on TTWO after the merger.
Now, we’ve got one on ZNGA:
This customer sold a put and bought a call spread, paying just 32 cents total.
It’s a bullish trade – and this customer is looking for a clear run higher in ZNGA.
ZNGA had a massive jump early this year, but it’s traded relatively sideways since then:
But if you want to see where ZNGA is headed, then you’ve got to look at TTWO.
After taking a dip at the start of the year, TTWO has actually been moving higher:
Right now, TTWO is about 11% higher from its 2022 low, And if TTWO continues to move higher, ZNGA could make a run at $9.50 – $10, making this big money trade a smart one to piggyback.
I’ll be live again tomorrow at 10:30 AM for an hour-long Profit Takeover trading show… right here in the main room.
See you then,
One response to “Fade the Earnings Run in XOM & HOOD”
February 01 2022