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Bears Bet the Fed Pump Won’t Be Enough to Save This Software Stock

by | Nov 30, 2022 | Options

Markets popped Wednesday afternoon after Federal Reserve Chair Jerome Powell telegraphed a need to “moderate” future interest rate hikes.

Trade volumes were light this week in the lead-up to Powell’s remarks, and the dovish comments whipped the bulls into a frenzy — flipping the S&P 500 green and the Nasdaq soaring more than 300 points in an hour!

I can’t wait to see if this trend holds in December because I’m ready to start slinging some trades again…

But even in low-volume, high-volatility markets we get during the holidays, we can always look for catalyst events like earnings to help move stocks independently of the broader market.

That could be the case for a software stock I’m tracking…

Elastic Chart (Blitz Daily With Lance Ippolito)

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

It’s been a miserable few sessions for software names, and institutional traders think it will get even worse for data analytics firm Elastic when it releases earnings figures after Wednesday’s close.

My scanners spotted a surge of put buys with one big swinger sweeping up more than 700 contracts of the Dec. 16 expiration, $55 strike puts for over $200,000 in premium!

Of course, that’s not the only outsized order hitting Wednesday’s tape…

  • Medical Properties Trust Inc. (NYSE: MPW): Dec. 30, $12 PUT.
  • IMAX Corp. (NYSE: IMAX): Dec. 16, $17 CALL.
  • Elastic N.V. (NYSE: ESTC): Dec. 16, $55 PUT.

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

P.S. Options Activity Rockets Higher While Investors Sell Off Stocks

When it comes to investing, there really isn’t much worth buying at the moment…

As much as everyone is hoping for a rosy market, it ain’t happening…

And how could it? Everyone and their brother is SELLING stocks…

The Wall Streeters, politicians and corporate elites also continue to dump shares like there is NO TOMORROW.

On the other hand, the options market has never seen so much action!

And that’s why I’ve opened up access to my Unusual Options Training Class

It doesn’t cost a dime to attend and I’ll show you what to look for, read and use the information published in the options market to generate your own trade ideas!

Get Access 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

WRITTEN BY
Lance Ippolito

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