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How to Spot a Call Skew — and Why It Might Be Wise to Avoid These Trades Editor’s note: We’re running some of Lance’s timeless investing tips this week. We’ll get back to the regular content next week! I don’t know about you guys… but I’m trading small in size right now. Sure, I have a ton of positions on, but almost all of them are five contracts or less. It’s not my favorite way to trade, but I’m decently hedged and I feel good about my book as a whole right now. It’s a big week for earnings with Netflix having reported, after the close, and Tesla coming Wednesday after the close. We looked at Netflix Inc. (Nasdaq: NFLX) this week to see if it was a good earnings trade idea… So I pointed out prior resistance around $375 (the upper pink line), and prior support around $300 (the lower pink line) with the stock trading around $338 on Monday morning. Market makers are projecting about a $30 move up or down in response to the company’s earnings report, which is an “unknown event,” by Friday’s expiration of the weekly options. So I’m looking at about $368 to the upside, or $308 to the downside for my calculations. Lance doesn’t want the CCP spying on him, so you’ll never find him on TikTok. Same goes for other social media sites, which are filled with impersonators and scammers. You can only find him on his personal YouTube Channel — smash that Subscribe button! https://www.youtube.com/@LanceIppolito And in his private Telegram channel: https://t.me/+-gVwEIwGJhplMTgx |
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