loader image

Retail Names Heat up as Bulls Search for Upside Ahead of Earnings

by | Nov 12, 2021 | Crypto

It was a good week for a move. I spent the first few days in the new place huddled around my laptop and cell phone hotspot waiting to be reconnected to civilization.

Thankfully, it’s been a slow week for the options market as there’s been no definitive trend in the market internals.

Earnings for most of the S&P 500 is behind us, and most of the bets we saw this week were junk meme stocks.

That should turn around next week with several major retailers reporting in the last full trading week before we hit the holiday shopping season.

We saw that flow start to roll in earlier this week, and I couldn’t refuse the opportunity to take a quick trade on a retail name seeing unusual options activity.

Retail Names Seeing Unusual Options Activity as We Head Into Earnings

Two weeks ago, we featured Hasbro Inc. (Nasdaq: HAS) as one of my two top holiday stocks ahead of its Oct. 26 earnings report.

The company’s report beat consensus estimates by more than 13%, and the stock has gained almost 11% since the write-up.

Early Monday during my daily live Daily Profits Challenge War Room session, the Blitz Tracker picked up this retail name seeing some unusual options activity. 

Bullish traders dropped in and picked up more than 1,600 contracts of the at-the-money $96 weekly call options for Hasbro ahead of an industry virtual exposition hosted by Jefferies.

With shares trading around $96.50, the alert went out to buy calls at a cost of $1.70…

By Tuesday’s open, HAS shares were trading just under the $98 mark while the options opened around $2.20. I promptly sent an alert to close for a quick 29.41% one-day gain — BOOM!

 

If there’s one trend the market can’t seem to shake,  it’s that I sold too early again. Shares continued to rally over the next two days before the call peaked at $3.

I’ll take those meat and potatoes any day, especially with a quick win like this one. And if Daily Profits Challenge members continue to get better fills than I do when these retail names see unusual options activity, it’s a fantastic problem to have.

Check out the quick video below to find out my thoughts on the trade during Tuesday’s War Room. 

P.S., This one tiny EV stock could be one of the biggest benefactors of the upcoming infrastructure plan.

Forget Beryl’s $25+ million dollar stake… 

Or that Goldman Sachs, Citadel and Millennial Management — some of the biggest heavyweights in the world — have thrown their hats in on this stock… 

A large cash injection into EV coming from President Joe Biden’s administration could be the biggest boost this stock ever sees.

Find out All About It! 

WRITTEN BY<br>Lance Ippolito

WRITTEN BY
Lance Ippolito

What to read next

99 Problems and a “Pivot” is One

99 Problems and a “Pivot” is One

A friend of mine sent me this chart about three months ago. I should probably print it and keep it in my wallet next to a photo of my daughter. Given the sheer number of questions I’ve fielded lately, I’ll probably end up showing this chart more than her picture.

read more
Everything Everywhere, Going Down, All At Once

Everything Everywhere, Going Down, All At Once

When our momentum reading went negative last week, I didn’t know that we’d have the second largest bank failure in U.S. history three days later. All I knew was that it went negative… and that we got out of the way.

read more
Trust But Verify…

Trust But Verify…

I want to talk about our version of “Trust but Verify” in the markets. Qualification is the most important part of the investing process. And this F score value strategy looks to be crushing the current market.

read more

Have any questions? Contact Our Customer Service Team