We Played Uber Down – Now, We Play It Up
Because yesterday, big money flew into the stock on the bullish side.
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A customer bought 15,000 of the February $50 calls early in the day, and then a few hours later came in and bought 13,000 of the same ones.
Together, we’re looking at nearly 25,000 contracts betting on an UBER rally.
Now, we’ve already made money on the stock’s downward move. Yesterday, my Profit Revolution members sold the UBER November 26, 2021 $45 put for $2.75.
Guess how much we bought it for?
99 cents – on Monday.
By Tuesday morning, that put had hit a 50% profit.
By the afternoon, 100%.
And then, Wednesday comes, and we’re looking at 177%.
All together, that’s a two-day 109% profit on UBER.
Now that we’ve profited on UBER’s downside, it’s time to catch it on the upside.
I’m just going to straight-follow this one by buying the UBER February 18, 2022 $50 calls.
But don’t go just yet – because I’ve got another impact money trade to show you today.
At the lows of the day yesterday, a customer came in and swept. What does that mean? Well, they pushed a button and SOLD the Qs.
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They sold about 65,000 of the QQQ December 17, 2021 $338 puts, looking to collect yield.
People love trading the Qs. And I get it. But if I’m selling puts, I’m not doing it on the Qs.
Why? Well, the individual equities in the Nasdaq actually have higher volatility than the ETF. And when you’re selling to collect yield, you want high IV. That means you’ll collect more money.
Sell the top five or six names instead – that’s Apple, Microsoft, Amazon, Google, Facebook, and Tesla.
My Top Two Stocks of the Day
- Unity Software Inc. (NYSE:U)
U’s earnings report this week sparked a run-up in the stock. Not just because of its earnings and revenue beat, but because of its plans to buy Weta Digital, the company that made the visual effects for “Lord of the Rings” for $1.6 billion.
And I’m looking to ride this one higher.
January is the cheapest month on the board from an IV perspective. From a dollar perspective, however, the options aren’t exactly affordable on this $183 stock.
So to play this name, we’ve got to spread it. The January $180-$200 call spread is somewhere between $6 and $7, and if U makes a run at $200, then this spread could double.
- Paypal Holdings Inc. (Nasdaq:PYPL)
PYPL took a hefty dip on Tuesday after a disappointing revenue forecast in this week’s earnings report. Shares fell more than 10%, and they haven’t seen a rebound just yet.
With that crash, the IV is high here. And the options, frankly, are too expensive.
So instead of buying, you want to sell. And you can do that with the June $195-$145 put spread.
If PYPL falls between those strikes by expiration, then you’ll take home $1,000.
Sub-17 by Friday – the VIX is Back to Red
But it didn’t quite make it there. Volatility never really got a bid.
So now, our light is blaring red as volatility falls. By the end of the week, I think we could be looking at a sub-17 VIX.
Want to catch my end-of-week volatility forecast after the open tomorrow? I’m live for my Profit Takeover show at 10AM sharp – and I’ve got a special guest joining me.
Founder, Profit Takeover
November 11 2021