Why the Market Keeps Going Up: Today’s Watchlist
- Pfizer Inc. (NYSE:PFE)
We saw a slew of earnings reports today, but the biggest mover isn’t even an earnings stock – it’s PFE:
PFE Nov2021: Asymmetric Trading System
PFE opened up almost 10% higher this morning on news that it has a COVID drug with 89% efficacy at preventing hospitalizations.
- Planet Fitness Inc. (NYSE:PLNT)
PLNT reported earnings this morning, beating expectations and announcing a positive forecast. The stock opened up 6% – and it’s a stark difference to what’s happening to Peloton Interactive Inc. (Nasdaq:PTON).
As I type, PTON is down over 30% after it reduced its sales forecast. It’s clear that people are going back to the gym – and this is a perfect example of how money moves in the market.
Money doesn’t just leave – it moves. People aren’t selling PTON and pocketing their cash. They’re putting it in stocks like PLNT. And that’s why the market is able to keep going up, even when stocks like PTON are crashing.
- Robinhood Markets Inc. (Nasdaq:HOOD)
I’m not just looking at HOOD shares. I’m looking at its borrow rate – AKA, how much it costs to short the stock.
And that borrow rate is starting to creep higher.
When the cost to short a stock gets expensive, the calls get cheap, allowing you to get in on a potential short squeeze.
And the November $36 calls are only $1.
These Traders Took an Asymmetric Profit Before Noon
The October jobs report was a clear bullish signal for the market.
The unemployment rate fell to 4.6% from last month’s 4.8%, and non-farm payrolls added 531,000, compared to September’s 194,000.
And the market is loving it, the S&P creeping toward a new 52-week high – handing my Profit Revolution members quite a profitable Friday morning.
On the open, they had the chance to take 100% on half of a Carnival Corp. (NYSE:CCL) call that’s been open for less than a month.
Then, just minutes later, they could have exited even more for a 154% profit.
And then, all before noon, they could have fully closed their position for another 98%.
What a morning. If you want in on asymmetric profits like these, click here to learn how you can join the Profit Revolution!
The VIX, by comparison, is quickly approaching sub-15. And if this bullishness continues, we could be hitting 14 or lower soon.
Zillow Is Out, Opendoor Is In
Laying the groundwork for top competitor Opendoor Technologies Inc. (Nasdaq:OPEN) to flourish.
And this big-money buyer is taking advantage:
Click To Enlarge
We’re looking at a straight-up bullish call spread here, the trader buying the November 12, 2021 $25 calls and selling the November 12, 2021 $35 calls.
Look – I absolutely love this one.
OPEN is set to report earnings next week. And with ZG out of the way, I’ve got a feeling its forward guidance is going to be big…
Sending the stock skyward.
This big-money buyer is good at picking stocks, that’s for sure. But they don’t know options quite like we do…
These November calls aren’t the cheapest on the board – December is.
You can buy the December 17, 2021 $25 calls and sell the $35 calls for about $2 – $2.20, and the potential payout is serious.
This thing could make a run at $40 coming out of earnings, and I want you to be there to pick up the profits.
Have a great weekend,
Founder, Profit Takeover
November 05 2021