This Med Tech Company Is in Freefall

Institutional traders trade more than just the big-name, recognizable favorites like Apple, Amazon, or Facebook.

In fact, back when I worked on the floor, I didn’t know what half the companies I traded did. I only knew how they moved – and that’s how I made money.

Sometimes, I’ve never heard of the companies that the big money is trading, or what they do. And that’s exactly what happened today, when I saw this 6,900-contract close and roll on Nano-X Imaging Ltd (Nasdaq:NNOX):

NNOX is a medical technology company – but remember, we’re less interested in what this company does, and more interested in how it moves.

And it moves DOWN – down almost 25% in the past month, in fact:

NNOX Nov2021-today

What’s this big-money trader’s take on the future of NNOX?

This is a close and roll, meaning the customer sold the $20 puts for a profit because they were right… and then doubled down lower, buying even more of the $12 puts.

Personally, I think $12 is conservative here. NNOX is in freefall – and I think it might be heading to $6 a share from here.

Puts are the right move on this medical tech company.

Earnings Watch: Financials

Before I get into today’s Watchlist, make sure you’ve got the financials on watch.

These names kick off every earnings season, and this year is no different.

What is different, however, is the way we’re playing the reports.

Because realistically, we aren’t playing them at all. Well, we aren’t playing the reports themselves – we’re playing to the reports.

See, the banks are about to see a volatility rush into earnings. One that lends itself perfectly to my Asymmetric Trading Strategy.

Today, during my 2PM trading session in the Profit Revolution room, that’s exactly what I’m going to do…

Find cheap options on the financials to profit before they report.

And you can join me. Click here or give my team a call at 877.212.9163 to learn more.

Everything Is Down – Except KO

With KO up, AMZN down, and BAC set to report earnings next week, I’m looking to play each of these names today.

  1. Coca-Cola Inc. (NYSE:KO)

KO is green on a day when everything else is down – that’s a good sign, and it’s the reason I’ve got an eye on KO today. Where is the ceiling on KO in an environment where traders are reaching for safety?

  1. Bank of America Corp. (NYSE:BAC)

After showing so much strength the past few days, BAC is taking a breather with the rest of the market today. But the financials are strong, especially as they head into earnings at the end of the week. BAC reports on January 19, and the February $50 calls look good as a way to play the bank’s strength ahead of the report.

  1. Inc. (Nasdaq:AMZN)

AMZN is now down year over year – and I’m looking to sell puts on this big tech name while it’s relatively cheap:

I’m not sure where the bottom is here. But the January 28 $3,000 puts are really expensive right now, and that’s some premium I’d like to collect.

The VIX Just Rocketed Over 20

Before the market opened this morning, my VIX light was red. The VIX futures were in a contango… and volatility looked set to go lower:

Yellow Traffic LightBut shortly after opening bell, my indicators flashed YELLOW… meaning wild moves ahead.

The VIX is over 20 at I type, and that curve I showed you above is starting to flatten up.

Over the next few days, we could see some strong sell-offs and rallies as the VIX light stays yellow.

I’ll be live tomorrow at 10:30 for our Profit Takeover show talking the week’s biggest catalyst – EARNINGS.

Make sure you’re in the main room then…

Mark Sebastian
Founder, Profit Takeover


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