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3 Names Seeing Bullish Options Flow Following the Start of War

by | Feb 25, 2022 | Options

The market may only have been open four days this week, but you wouldn’t know it by the headlines — and all of those changes means we need to update the New Money Crew Weekend Watchlist with new targets.

After weeks of anticipation, the Russian military began its move into Ukrainian territory Thursday…

Following an initial sell-off at the open, stocks rallied later that day as President Joe Biden announced stiff economic sanctions for the aggressors…

The sanctions, along with speculation the conflict could pressure the Federal Reserve to postpone its expected interest rate hike, helped indexes turn course… Especially for riskier tech stocks with the Nasdaq, which rallied over 800 points to finish 3.3% in the green Thursday.

In short, it was another volatile trading day driven by more headlines out of Eastern Europe.

Those headlines have made things tough for traders to come out on top, but our New Money Crew strategies were able to find success amid the gloomy outlook.

Patience Pays off on Wiretap Alerts Earnings Plays

Monday saw Wiretap Alerts reel in profits on Lucid Group Inc. (Nasdaq: LCID) and Beyond Meat Inc. (Nasdaq: BYND) puts.

In the sell alert, I suggested that members could hold some contracts through earnings if it was within their risk tolerance…

And traders that took that advice saw a nice swing to the upside with the BYND puts hitting a peak gain of 163% from our entry, while LCID hit a peak gain of 85% heading into expiration!

Between the Wiretap wins and the Macy’s earnings beat for our watchlist and Weekly Blitz Alerts, these weekend trades have consistently offered impressive gains through recent volatility…

With that in mind, we’re going to stick with what’s working… So I’ve put together three tickers for the New Money Crew Weekend Watchlist traders need to have on their radar as we roll into a new month…

New Money Crew Weekend Watchlist for Feb. 25

Kicking off for the Weekend Watchlist, New Money Crew is looking to D.R. Horton Inc. (NYSE: DHI). It’s one of the largest homebuilders in the U.S., with product lines to fit buyers in nearly any income bracket. January saw housing numbers continue their climb higher with a 6.7% jump since December in existing home sales. 

Despite strong sales and growing revenues, DHI has dropped more than 20% off of its record highs from December. And bullish options traders were spotted taking positions earlier this week.

Next up is Bank of America Corp. (NYSE: BAC)… Thursday’s events in Ukraine hammered the financial sector as investors see some pain from institutions having to enforce a growing list of sanctions on activity involving Russian-based assets and transactions. Thursday’s 6% price drop in BAC capped off an 11-day, 15% slide. 

As we saw in Thursday’s Blitz Daily, the move was enough to entice traders to load up on short-term call options. Shortly after that trade hit the Blitz scanner, the bulls came back for more upside, taking a position in longer-dated monthly calls as well.

Finally, New Money Crew is adding tech stock Nvidia Corp. (Nasdaq: NVDA) to the Weekend Watchlist. On top of restrictions for financial companies, the invasion prompted the Biden administration to call for restrictions in technology sales to Russia. Also, with Ukraine being a major supplier of certain raw materials needed for chipmaking, the conflict could further squeeze a supply chain that hasn’t fully recovered from the pandemic. 

With shares dropping more than 20% in the past two weeks, traders jumped on Thursday’s momentum swing in tech. The Blitz Tracker spotted buyers sweeping up a big chunk of short-dated NVDA call options in the last hour of Thursday’s session.

Of course, for more detailed guidance through the volatile markets and big-money trades like these as we head into the weekend, check out my Wiretap Trade Alerts strategy! New trades are issued at 2:30 p.m. EST every Friday!

P.S. Believe it or not, but the stock market’s stagnant 70% of the time… So time decay is eating away at options, and traders everywhere are paying for it! 

It’s no surprise that the Chicago Mercantile Exchange says 76.5% of options expire worthless. 

So when rare and large moves in the markets occur, people often watch their trading accounts get wiped out time and time again. It’s a frustrating whipsaw of action that demoralizes traders. 

That’s why Joy of the Trade Head Trader Jeff Zananiri’s No. 1 goal is keep everyone away from this disappointing, costly process… 

Here’s How…

WRITTEN BY<br>Lance Ippolito

Lance Ippolito

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