Hey traders, Lance Ippolito here! Welcome to our Weekly Rundown, where we’ll share some of our top trading ideas — and our biggest winners!
Before we jump in, be sure and check out my new feature, The Blitz Daily, where I break down the day’s biggest options order flow. This replaced my weekly watchlist, and there’s a link to the latest edition down below.
Also don’t miss our BIG wins… We scored a 1,011% winner. Yes, you read that right, a win over 1,000%... overnight!
Now, on to the Weekly Rundown...
DoorDash, AirBnB, Coinbase, DiDi… the list of popular IPOs goes on and on. And yet somehow, no matter the outcome, the IPO frenzy is real. That trend looks to continue next week with Robinhood, the popular stock trading app, set to have its initial public offering on Thursday.
And I’m going to be honest… There’s a lot about this IPO that makes me laugh.
For starters, the company is set to go public between $38 and $42 a share — leaving the valuation at $35 billion.
That’s not a typo… $35 billion for an app that lets you trade on your phone. Because let’s be honest… their web-based platform sucks.
And if you want to laugh even more, look at the company in the private market less than a year ago. Its value was nowhere near what it’s set to go public at. In fact, it’s offering at three times higher than its private market value!
Talk about institutional investors getting a BIG payday off the little guy — which is us if we buy the IPO...
Is There a Way to Play the IPO?
Obviously, the two founders of the company, one of whom we know from his media *cough* court *cough* appearances, did say they will leave 35% of the offering for retail investors.
After all, Robinhood is supposed to be the platform for the guy, right? Democratizing trading and all that jazz, right?
But to see if there’s a way to take advantage of the IPO, let’s look at the context of Robinhood and some recent IPOs.
Two big names come to mind: Coinbase and Didi. Obviously, Jim Cramer told everyone over on CNBC to buy as much DiDi as they could at the offering around $18 and it quickly fell to $11 a share. And Coinbase?
Even though Ark CEO Cathie Wood keeps buying shares of it, if you look at the chart, it’s going to the earth… not the moon.
And Coinbase is the retail trader’s favorite platform for crypto. So if Robinhood experiences a loss of trading volume like Coinbase, the stock will fall. If there’s legislation on order flow — where Robinhood makes its money — the stock will tank.
So if you’re buying the stock at $40 or $50 a share, and then next month it’s down to $20 or $25…
Yeah, you just got swindled.
But I’ll be honest, I don’t think trading volume will go down. And after four to six months, with some hiccups, Robinhood could be a good stock. So if it falls to around that $25 range, I’ll buy.
And if it goes back up to $50, you better believe I’ll sell.
BIG Wins
We had a few more big winners this week from our Weekly Blitz Alertstrading strategy, including that aforementioned 1,000% grand slam! And by “a few,” I mean it was an absolute BANNER WEEK for Blitz!
After Thursday’s live masterclass, Blitz members joined me live for an exclusive earnings season trading session where we made a handful of earnings plays, which included a trade on Snap Inc. (NYSE: SNAP).
And when I say this is “the big one,” I mean it’s the BIG one!
Shares of the social media company were trading well under the $63 mark during our live session, and the Blitz Tracker spotted bullish repeat buying in the SNAP July 23 $63 calls, including over 9,000 contracts traded on July 15.
We booked a trade in the July 23 $67 SNAP calls at $1.17 a contract and waited for earnings to come in… And man, did they ever! Snap saw revenue more than double in the latest quarter, blowing Wall Street expectations out of the water and sending the stock rocketing over 17% from its Thursday close!
And when shares opened up Friday morning over 24.5% higher, those $1.17 options exploded to $13.00 for an earth-shattering 1,011.11% gain!… Overnight!
That’s an 11 times gain in less than 24-hours! If you got in on that trade, let me know — and don’t forget to breathe while counting all your money!
+1,011.11% on SNAP July 23 $67 CALL.
Entered on July 22 at $1.17 a contract.
Exited on July 23 at $13 a contract.
On July 13, the Blitz Tracker noticed traders picking up 2,663 of the Skechers USA Inc. (NYSE: SKX) August monthly $50 calls, and another 600 contracts bought in the August monthly $55 calls two days later, making the Daily Market Color each time.
More earnings bets in SKX started to hit the tape again early Thursday. Traders were mainly placing cheap, out-the-money bets in the July weekly $56 strike calls. So with market makers implying a $4.50 move for earnings, we made our move on the Aug. 20 $50 calls, picking up another round in the live afternoon session.
The shoe company reported revenue of $1.66 billion for the most recent quarter, topping analyst projections of $1.5 billion, and raised guidance. The strong news shot shares around 10% higher after hours, and the momentum helped our weekly options run away with gains of 32% and 50% in less than a day!
+32.35% and 50% on SKX Aug. 20 $50 CALL.
Entered on July 22 at $3.40 a contract.
Exited the first leg on July 23 at $4.50 a contract.
Exited the second leg on July 23 at $5.10 a contract.
Two weeks ago, the Blitz Tracker spotted dope traders fishing for the bottom in cannabis stocks and looked to snag Canopy Growth Corp. (Nasdaq: CGC) for some lit gains.
On July 15, the big boys bought over 1,850 of the CGC Aug. $22.50 strike calls that capture the company’s earnings date on (Aug. 6). These traders were looking for a squeeze higher as shares are on the lows of the year. Dope stocks have been burning down in 2021 despite legalization expansion and politicians pushing for reform.
After a few days of trading sideways, the stock picked up momentum with a 2.6% move to the upside Wednesday morning. That was enough to float the monthly $22.50 calls 50% higher, and we locked in another BIG gain in under a week!
+50% on the first half of CGC Aug. 20 $22.50 CALL.
Entered on July 15 at $0.50 a contract.
Exited on July 21 at $0.75 a contract.
This week saw a lot of interest in gambling stocks ahead of earnings, and we weren’t about to be left out!
On Monday, International Game Technology PLC (NYSE: IGT) saw repeat call buying on the morning's dip, with shares down around 6%. One big swinger came in and bought 3,150 contracts of the August monthly $19 strike calls, and sold August monthly $22 calls for a call ratio spread ahead of earnings on Aug. 4.
IGT also saw institutional buying of the October monthly $25 and the September monthly $20 calls of 1,400 and 1,000 contracts, respectively. And last week, whales picked up 15,000 contracts of the October monthly $21 calls, so it looks like these traders like IGT not only for earnings, but long term as well.
By Wednesday, IGT shares rebounded above the $20 mark from its $18.25 Monday low, helping the August monthly $19 calls roll in for a quick 50% win!
+50% on the second portion of IGT Aug. 20 $19 CALL.
Entered on July 19 at $1.30 a contract.
Exited on July 21 at $1.95 a contract
We talked about this trade last week, where Weekly Blitz Alerts took profits of 53.85%, 84.62% and 210.77% on three legs of a trade in Coca-Cola Co. (NYSE: KO). Well, we’re not quite done with it — and we saved the best for last!
Last week, I told Blitz members to hold a portion of their position through KO’s earnings report on July 21... And I’m glad I did! The company beat expectations with revenues above its 2019 levels, and raised guidance for the full year. This was undeniable evidence that any of Wall Street’s lingering concerns about the pandemic are in the rearview mirror.
Shares popped over 2.5% early Wednesday morning. That move sent our weekly KO July 23 $54.5 calls ripping even higher, closing the final leg for a wildly profitable 330% gain from entry!
+330.77% on the final leg of KO (July 23 $54.5 CALL).
Entered on July 8 at $0.65 a contract.
Exited on July 21 at $2.80 a contract
Be sure and check out our Weekly Blitz Alertsfor more BIG winners like this! Printing money, baby!
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