This Week’s Earnings Watch
Nordstrom Inc. (NYSE:JWN) reports after the closing bell today, and I think it has potential to blow this thing all the way to $40.
Look – Macy’s crushed it on earnings. And I think JWN is going to do the exact same thing, especially after the rough year it’s had:
Tonight’s earnings report is the push this luxury retailer needs to finally break higher. And when that happens, I see our long-held call position turning to a profit.
I’ve got a close eye on this report – stay tuned for any necessary portfolio action.
Here at Profit Takeover, I give you a new official trade recommendation every week. It’s how we’ve made asymmetric profits like 110% on AAL, 107% on UVXY, and 132% on AAPL.
It’s all happening on Thursday, August 26 at 12:30 PM ET. And you can click here to add this event to your calendar right now, making sure you won’t miss a moment of the action.
- Zynga Inc. (Nasdaq:ZNGA)
I told you about ZNGA entering my radar yesterday, and over the course of the day the stock popped 2.7%. I’m still bullish on this name, looking at the October $9 calls today to play further upside movement.
- CSX Corp. (Nasdaq:CSX)
This rail transportation company has been stuck in a tight range, but I think it’s ready to break out. And when it does, it could make a run at $35. To play that run, I’m looking at the October $35 calls for about $0.50.
- Transocean LTD (NYSE:RIG)
RIG has been a favorite oil and energy stock of mine for a while now, despite the fact it’s been stock in a downtrend over the past month. And I still think this stock has long-term upside potential – but while we wait for that to happen, why not collect some premium?
I’m looking to sell-to-open the RIG January 2022 $3 put for about $0.52. Collect the premium if it stays above $3 – and if it drops further, then take delivery of the shares so you can profit once this name does break out.
- KE Holdings Inc. (NYSE:BEKE)
I found some under-the-radar activity in this China stock today. And it’s some big activity:
Someone sold about 122,000 contracts in the September $10 puts, looking to either collect yield or take delivery in bulk if the stock drops below that $10 mark. We’ll put it in the quasi-bullish camp, and it might be interesting to look at some calls. Specifically, the September $20 calls for about $0.70.
- Apple Inc. (Nasdaq:AAPL)
Option volume has been off the charts on AAPL over the past two weeks. And the stock just broke $150 for the first time. From here, look out – I think we could see AAPL completely explode over the next few days to weeks.
VIX Traffic Light
Last week, I told you why the market can’t sell off.
And eight days later, that sentiment remains true.
Look, the market is over-hedged. People are buying puts on the S&P and individual stocks as protection – protection for trades that they’re already long on.
As a result, the VIX is overpriced. These put buyers aren’t scared of a sell-off, because if one happens, they’re protected. They’re hedged. And then, the buy-the-dip crowd will swoop in and boost the market higher yet again.
It’s a volatility feedback loop, and it’s keeping the S&P afloat. I think we’ll see 4,500 this week on the S&P while the VIX drops to 15.
So, no question about it – today’s traffic light is red.
See you soon…
August 24 2021