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I Wanted to Trade Tesla Earnings, But the Order Flow Said ‘No Way’

by | Oct 21, 2022 | Options

Earnings season is back and I am loving every minute — the order flow has been hot, and so have the returns!

Earnings have given the markets a much-needed distraction from all of the interest rate fears weighing things down, allowing options trades to break out!

Case in point, Weekly Blitz Alerts crushed both of this week’s earnings trades, each delivering monster gains in less than 24 hours!

But earnings season doesn’t mean we can get away with trading just any order that comes across the tape…

And that’s because implied volatility is through the roof…

So we need to be selective to help keep that volatility from crushing our trades.

Blitz Scores Big Gains on Earnings Options Trades — Overnight!

While the boring banks technically kicked off earnings season this past week…

I generally choose to wait on stocks in other areas of the market that tend to make bigger moves.

This week, we zeroed in on the energy and casino industries, and the gamble paid off!

On the energy side, we spotted a colossal bullish bet in oilfield service giant Baker Hughes Co. (Nasdaq: BKR)

When we trade earnings options flow, we’re always on the hunt for orders that stand out from the crowd…

Sometimes, that’s evident in the sheer dollar amount — like with seven-digit premium price tags. And other times, it’s single trades that make up a big chunk of a stock’s daily options volume. That often means someone knows something…

With the company ready to report earnings midweek, my scanners spotted a big dog trader lay out $265,000 in premium on over 2,600 contracts of the Nov. 18 expiration, $25 strike call.

That trade alone represented 16% of Tuesday’s total call volume in BKR!

Clearly, someone knew BKR was sitting on a gusher… And when earnings and guidance came in strong Wednesday, shares shot up as much as over 9.5% above its previous closing price — helping Blitz members score a 105%* return!

You can’t argue with results like that, but earnings options trades aren’t always this clear cut…

Follow the Options Flow…

On Wednesday, I went live with Weekly Blitz Alerts members ahead of Tesla’s event with the intent of buying some options in Elon’s EV baby… But sometimes, the markets don’t cooperate.

There was plenty of volume in the options chain… In fact, there was too much — by the time I went live, Tesla had traded more than 1.4 million options contracts!

But unlike BKR, the biggest clean order of Tesla options we saw on Wednesday wasn’t even a tenth of 1%.

To be blunt, there wasn’t anything special about the Tesla orders that rolled in Wednesday.

So rather than force a trade, we turned our sights on our old friend, Las Vegas Sands Corp. (NYSE: LVS), where we found an order for over 1,500 contracts of the Oct. 28, $36.50 calls.

Those calls represented around 1.5% of total options volume… nowhere near as big as the BKR trade, but it was something worth trading.

And because we stuck to our strategy and looked for standout options flow, not only did it help us avoid an ugly earnings flop for Tesla, it lead us toward a 65%* one-day gain in Las Vegas Sands!

Check out the video and watch me break down the earnings options flow in Tesla and LVS in real time! 

Don’t forget 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!

P.S. Extreme rate hikes are on the horizon as early as Nov. 2 — the date of the next Federal Reserve meeting.

The market knows the Fed isn’t playing around… It seems like it will do WHATEVER it takes to slow inflation… and nothing seems to be working.

With this idea in mind, Senior Strategist Roger Scott noticed a major shift in the S&P 500 sectors as the market prepares for a potential trainwreck.

November is yet to be determined, but Roger’s already taking action with his No. 1 Sector Play for the month!

Want in? He gave it out for FREE during Friday’s live training… 

Get the Details Here

*The profits and performance shown are not typical, we make no future earnings claims, and you may lose money. From Feb. 21, 2020,  through Oct. 21. 2022, on live signals, the win rate was 68%, the average return per trade (winners and losers) was 14.9%, the average winner was 77.8% over an eight-day average hold time.

WRITTEN BY<br>Lance Ippolito

Lance Ippolito

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