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Bears, Fed Trample Bulls as Tesla Drags Down Automakers

by | Oct 20, 2022 | Options

In Thursday’s Blitz Daily with Lance Ippolito, we take a look at iconic automaker General Motors ahead of its upcoming earnings event.

The bulls tried their best with Thursday’s markets getting a nice earnings pop in the first 30 minutes, but bears weren’t having it… 

Both the Nasdaq and S&P 500 flipped red by the afternoon while earnings orders turned bearish with the market… This of course also came after the gasbags at the Federal Reserve once again poured cold water on the fun. 

Automotive names are feeling some pain after posting disappointing forward guidance from leading EV-maker Tesla, sinking its stock more than 7%. 

The drop helped pull down other automakers including General Motors, whose shares have fallen 20% over the past five weeks. 

General Motors Stock Chart (Blitz Daily With Lance Ippolito)

Wondering what those little arrows mean and how they can help improve your trading? Get the details here!

And judging from Thursday’s order flow, the intuitions are expecting more downside in GM as the company approaches its Oct. 25 earnings date. 

My scanners spotted outsized bearish bets hit around 1 p.m. on the East Coast, with one trader picking up about 1,700 contracts of the Oct. 28 expiration, $34 strike puts for around $155,000 in premium! 

Of course, that wasn’t the only name hitting Thursday’s tape… 

  • General Motors Co. (NYSE: GM): Oct. 28, $34 PUT. 
  • Tesla Inc. (Nasdaq: TSLA): Oct. 28, $187 PUT.
  • JD.com Inc. (Nasdaq: JD): Jan.20, 2023, $10.50 CALL.

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

P.S. Joy of the Trade’s Jeff Zananiri sounded the alarm on a building energy crisis earlier this week, and he’s been warning traders that we’re set to feel the worst of it as early as this winter.

But it’s not all doom and gloom… Jeff has also identified a way to potentially capitalize on the high energy prices and persistent inflation we’ve endured.

And he just held a live presentation where he shared a special over-the-shoulder demo of his “two-step” technique that investors can use to hedge during energy supply shocks.

But that’s not all… he also revealed his No. 1 Energy Supercycle Play!

Watch Jeff’s Presentation Here

Blitz Daily With Lance Ippolito

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

The Blitz Daily with Lance Ippolito is where I go over a few options trades that hit the Blitz Scanner each day, Monday through Thursday. I break down the trades with the sexiest order flow and tell you what could happen with those stocks by the next day’s opening bell.*

If you want in on these explosive options plays, be sure to sign up for Weekly Blitz Alerts! We send entry, profit targets and exits directly to you via text and email 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 on WealthPress.com!

*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. 

WRITTEN BY<br>Lance Ippolito

Lance Ippolito

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