IBM Is Finally Ready for an Asymmetric Post-Earnings Trade
From Down 70 to Up 40 – Wild Moves in the VIX
But before the market even opened, they were up 40.
This is the definition of a green VIX light. Because remember, volatility doesn’t only mean the market going down…
It means wild market swings in both directions, like we’re seeing right now.
There are some lights pointing toward the end of this high-volatility tunnel. Q4 GDP, released this morning, was stronger than expected with growth of 6.9%.
But it’s not enough to change the color of my VIX light.
I need to see a rally actually hold before I get bullish here. And the VIX futures curve is still in a steep backwardation – meaning the end isn’t here just yet.
Post-Fed Analysis – Today at 1PM
Even if he didn’t even say anything that bearish.
Today, during my Profit Revolution lifetime session, I’m going to be joined by the one and only Bill Griffo.
“Griff” has been a bond trader for more than 20 years, and he’s my go-to for all-things-Fed.
At 1PM today, he’s going to explain what Powell really said yesterday – and why the market reacted the way it did.
Then, he’s going to talk about today’s positive GDP number… what it means, how it will affect Q1, and what it will do to the stock market.
And then, he’s going to give us a TRADE based on it all.
- A bonus trade recommendation every week
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- CBOE insider sessions
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- Lifetime access to Profit Revolution
Here’s what current members have to say…
Interested in joining? Even if you can’t make today’s session, a replay is always available for lifetime members.
Call 877.212.9163 NOW to get in in time for our session with Bill!
This Fintech Stock Is Looking for a Bottom
AFRM 2022
But now, traders are piling in, buying calls on hated names like AFRM:
What we’re looking at here is a straight call buy on AFRM – 10,000 of the February 18, 2022 $75 calls, in fact.
AFRM is a $55 stock as I type. But it was once $176 – and this big-money trader thinks it can at least get back up to $75 from here.
That’s a big move for a stock as crushed as this fintech name. So really –
When I see this much cash flow – $2.6 million, in fact – in a high-beta name, it makes me think that a bottom is coming.
It’s possible AFRM won’t crash much lower. And soon, it might ride the wave back up.
IBM Is Ready for a Post-Earnings Trade
- IBM Common Stock (NYSE:IBM)
IV has gotten absolutely crushed on IBM post-earnings…
IBM IV Crush Jan 2022
And it’s finally low enough that we can seriously start looking at buying puts in this name…
Which is exactly what I’ve got on the docket for today’s 2PM Profit Revolution trading session.
There’s still time to take part in our post-earnings trading strategy. Click here to learn more!
- Intel Corp. (Nasdaq:INTC)
INTC is down 6.5% after reporting earnings last night, despite beating expectations.
Yesterday, I told you I’d look for a post-earnings trade on INTC – and right now I’m looking to either sell puts or buy calls if IV falls enough.
- Energy Select Sector SPDR Fund (NYSEARCA:XLE)
Energy is blowing higher along with other materials stocks. The XLE, in fact, is up 4.25% in the past five trading days.
And I think oil could go to $100 a barrel – which would only light another fire under XLE.
- Robinhood Markets Inc. (Nasdaq:HOOD)
Things haven’t been going great for HOOD a year after the retail trader mania that shot this thing “to the moon.”
It’s down 5% today ahead of this afternoon’s earnings report. We know it’s going to be bad…
But how bad? That’s the question – and that’s why I’ve got HOOD on my radar.
IV has been ricocheting higher in HOOD ahead of earnings. And after the report, it should crash…
Giving us an opportunity to cash in on HOOD’s downfall.
Remember to call my team at 877.212.9163 NOW if you want to join today’s 1PM trading session with bond trader Bill Griffo!
I hope to see you then,
Mark Sebastian
Founder, Profit Takeover
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January 27 2022
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