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SOFI Earnings Set off Sector-Wide Short Squeeze

by | Aug 3, 2022 | Options

In Wednesday’s Blitz Daily with Lance Ippolito, we take a look at online lending platform Upstart as fintechs see a sector-wide short squeeze.

We’re seeing another monster day in the market — the past five weeks have had amazing options flow… and it just keeps rolling!  

Trading has been aggressive and following that “paper,” as the kids say, has led to some fantastic trades in the brutalized, beaten-down tech stocks. 

The “hated” Cathie Wood, Ark Invest tech holdings like Upstart are peppering the tape in size right and left. 

Shares of the online lending platform are up more than 19% after fellow fintech SoFi Technologies Inc. (Nasdaq: SOFI) soundly beat earnings expectations, strapping a rocket to the whole sector. 

When I say these names are “hated,” I just mean they’re some of the most highly shorted stocks in the market…  

With the short float over 35% on UPST, when a stock like this sees good news, those bears get their shorts squeezed straight to the moon… and I love it! 

My scanners spotted one opportunistic big-money trader who jumped on the pain train at the open, grabbing around 900 contracts of the Aug. 12 expiration, $30 strike calls for about $275,000 in options premium!  

The tape might as well be a Cathie Wood greatest hits album. Look at these names… 

  • Moderna Inc. (Nasdaq: MRNA): Aug. 12, $200 CALL.
  • Nvidia Corp. (Nasdaq: NVDA): Aug. 12, $192.50 CALL.
  • Upstart Holdings Inc. (Nasdaq: UPST): Aug. 12, $30 CALL.
  • Meta Platforms Inc. (Nasdaq: META): Aug. 12, $170 CALL.
  • Tesla Inc. (Nasdaq: TSLA): Aug. 5, $920 CALL.

Check out my short video and I’ll break down the day’s most unusual options order flow in no time flat! 

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Blitz Daily With Lance Ippolitto

At Weekly Blitz Alerts, we follow the big fish and what they’re buying. And we do that with my proprietary Blitz Tracker, which alerts me to big, institutional options order flow throughout the day. Then we get in on these plays and follow the “smart money.”  

By doing this, we cash in whether the broader market is going up, down or sideways. 

The Blitz Daily with Lance Ippolito is where I go over a handful of options trades that hit my Blitz Tracker each day, Monday through Thursday. I will break down the trade with the sexiest order flow and tell you exactly what I think can happen with that stock by the next day’s opening bell. 

If you want in on these fast-moving options plays, with entry, exit and profit targets sent directly to you via text and email alerts, be sure to sign up for Weekly Blitz Alerts!  

In the meantime, you can follow me @LanceIppolito on Twitter, Instagram and our YouTube channel for more trading insights and tips. And as always, you can find me right here talking stocks and options trading — and printing money — on WealthPress.com!

WRITTEN BY<br>Lance Ippolito

Lance Ippolito

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