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Institutional Traders Don’t Want Dairy in Their Coffee
Someone bought 10,000 of the January 2023 $7.50 calls and sold 20,000 of the January 2023 $22.50 calls against it, betting on a move toward $20 by early next year.
This is what I like to call a WHAT THE HECK trade. Because OTLY barely trades on a day-to-day basis. You don’t see this type of volume in the dairy-alternative stock. This is north of 10X the average daily volume in OTLY.
It’s a hard one to ignore. There might be some kind of partnership on the horizon for OTLY…
And that’s something I definitely want to piggyback.
The January 2023 $12.50 calls are a whole lot cheaper than the $7.50s, setting me back only $1.35. Against that, I’d sell the January 2023 $25 calls for 50 cents.
In total, you’re paying about 85 cents – half of what this trader paid for their one by two. And you’ll participate in OTLY the same way as this trader.
It’s Finally Time to Trade Earnings… After the Reports
These top three banks officially kicked off the fourth-quarter earnings season this morning – but you might be surprised that I don’t give a hoot what the reports actually say.
Because all I’m watching is the implied volatility. That’s where the profit opportunities are, because that’s what determines the price of options.
I’m watching the IV drop in these names to see if there is an opportunity to jump in either direction. And a post-earnings bank play might just be your ticket to profits next week.
- Delta Air Lines Inc. (NYSE:DAL)
DAL is another post-earnings name on my radar. The stock is off this morning, which could set up for a nice entry in the Profit Revolution trading room this afternoon as IV bottoms out.
I’m looking to trade some sub-$1 options on this name for a short-term post-IV profit… and you can join me.
- Las Vegas Sands Corp. (NYSE:LVS)
LVS was a featured big-money flow stock this week – and we were right, as the stock did pop higher. As I type, this thing is over 13% higher on the day. It’s on a serious up trend as Chinese-related stocks move higher, and I’m interested to see just how high this thing can blow.
This ETF Is a 50LB Weight on the Market’s Neck
But after the initial earnings shock, things settled – and the VIX made its way down closer to 20.
So, my VIX light is red again today, meaning volatility is set to drop. But there’s one ETF whose heavyweight is keeping VIX above the teens…
ARKK is weak.
The ETF is down 4% in the past five days – 14% in the past month. And with high-beta holdings like Palantir, Teladoc, Docusign, Draftkings, and Tesla – ARKK has been like a 50-pound pendant around the neck of the market.
But one has to wonder where it ends. Because ARKK won’t be in the dumps forever.
And if ARKK catches a bid, then IV could get absolutely smoked.
During a three-hour weekend trading class, Kenny is turning off ALL the distractions of the market so that he can teach the “VWAP-curious” how to use what he calls “the only indicator you will ever need.”
And we’ve already got some promises from Kenny out of the gate – during the class, he’s going to share…
- Earnings stocks on his radar
- How to pick the best stocks for a VWAP trade
- Charts on charts on charts
- His secret trading weapon…
- And the reddest of all red meat…
Registration for Kenny’s Saturday class ends today at 4PM. I’m already signed up – and I’ll be there, in the chat, learning what I can about the VWAP as we get ready to head into a busy earnings week next week.
And I’ll see you tomorrow,
Founder, Profit Takeover
January 14 2022