Hey traders, Lance Ippolito here! Welcome to our Weekly Rundown, where we’ll share some of our top trading ideas — and our biggest winners!
This never gets old…
First, it was a 926% winner on SNAP calls. This past week, it was a 455% gain on PINS puts. This week, we reeled in a 255% winner on Fastly puts — hello, my name is Lance and printing money is my thing! More on this week’s big win later…
First, let’s chat about Robinhood stock. You guys know I’ve had my fair share of fun at this company’s expense, but it’s still a popular stock that’s seen a lot of action the past eight trading days...
And with Robinhood’s recent initial public offering, a lot of people have been asking for trading expert and Forbes contributor Adam Sarhan’s stock forecast and, more specifically, who is doing the buying after it spiked over 50% on Wednesday, exactly one week after it hit the market. Also of note, after dipping on Thursday, HOOD was up 13% just after lunch time on Friday.
And people want to know if it’s retail traders buying the stock, or the “Kingmakers” — big institutional investors, as Adam calls them.
Robinhood Markets Inc. (Nasdaq: HOOD) went public on July 29 at $38 a share. After trading down for a few days, things reversed upward in a big way this past week when it exploded higher…
And judging by the volume, the Kingmakers are indeed stepping in to buy and sell this stock, according to Adam.
It’s not normal movement and 2021 has been the year of the “meme stock,” with HOOD’s Monday action reminiscent of the major moves up from the likes of GameStop Corp. (NYSE: GME) and AMC Entertainment Holdings Inc. (NYSE: AMC).
Let’s Look Under the HOOD
What makes Robinhood different from the monster moves up in GME and AMC is the latter two also happened to have a lot of short interest. With Robinhood being a new IPO, that hasn’t happened yet.
And with it being a brokerage, it allowed its users — average retail traders, many of whom are on the younger side — to get in on the IPO, and apparently many of them did. So the platform’s customers bought in, and then others jumped on board after its IPO…
So the stock took off.
But after the company announced Thursday that existing shareholders will sell almost 100 million shares over time, the price went down a peg… So is it still a buy?
Well, Adam’s first rule is don’t chase. HOOD hit a high of around $85 per share Wednesday, so if you bought it then… you wouldn’t be happy when the stock fell to $64 the next day.
And many of you are probably asking, is that a good entry point? Adam says the key is to look at volume. Because that metric tells you exactly what the big institutional investors are buying — or selling. He saw it a lot this past week in stocks like Fiverr International (NYSE: FVRR), Etsy Inc. (Nasdaq: ETSY) and Datadog Inc. (Nasdaq: DDOG).
When volume spikes and the stock goes up, it’s a good time to get in — but don’t chase highs. If the stock is going down on increased volume, that’s a bad place to be long.
So when it comes to Robinhood… all you have to do is watch the volume.
Now, on to some...
BIG Wins!
We had a few more BIG winners from our Weekly Blitz Alerts trading strategy, which has reeled in back-to-back-to-back weeks of triple-digit scores!
The bears were all over cloud services provider Fastly Inc. (NYSE: FSLY) in recent weeks, and my Blitz Tracker was there for every move! The stock struggled to perform the past several quarters and the C-suite was unloading shares by the fistful leading up to its Aug. 4 earnings date. The prospect excited traders enough on Wednesday to buy over 1,500 contracts of the Aug. 6 $42 puts, along with other sizable bets around that strike price. All of this was too much to pass, and the alert went out for Weekly Blitz Alerts members to join in on the action!
Fastly reported earnings after the bell, only for the stock to disappoint on already dismal expectations. The firm narrowly missed on revenue expectations for the second quarter, but it was the reason for its lowered guidance that spooked shareholders most...
The company’s content delivery network (CDN) suffered a service outage on June 8 that took out websites around the world, including Twitch, a live-streaming platform owned by Amazon.com Inc. (Nasdaq: AMZN). The CDN hiccup impacted quarterly revenue, scared off top clients and delayed onboarding for new customers.
That was more than enough to stoke selling pressure after hours, with shares dropping over 20%. The plunge helped our puts close for our third eye-popping, overnight gain — this time for 254.55% — in as many weeks!
+254.55% on FSLY (Aug. 6 $42 PUT).
Entered on Aug. 4 at $2.20 a contract.
Exited on Aug. 4 at $7.80 a contract
On July 30, the Blitz Tracker reported big moves in online auction house eBay Inc. (Nasdaq: EBAY). The big dogs were looking for further downside gains by buying puts in EBAY ahead of earnings as market makers were looking for a +/- $6.00 move on the Aug. 11 report. The collectibles market has been declining over the previous quarter and from late 2020 when it peaked. Traders responded by rolling down their bets in the Aug. 20 $73 puts to buy Aug. 20 $69 puts as shares fell 6.85% that Friday.
Last quarter, EBAY sold off nearly $7 a share on earnings, followed by a parabolic rally since. Now, selling pressure is seeping in ahead of earnings. Shares tumbled more than 2.5% on Thursday as Etsy Inc. (Nasdaq: ETSY) crashed on earnings. That drop gave Weekly Blitz Alerts an opportunity to take profits off the table for a quick 29% gain!
+29.03% on the first half of EBAY (Aug. 20 $69 PUT).
Entered on July 30 at $3.10 a contract.
Exited on Aug. 5 at $4.00 a contract
Be sure and check out our Weekly Blitz Alerts for more BIG winners like this! Printing money, baby!
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Disclaimer & Disclosures The information in this email is intended for informational purposes only and does not guarantee specific results as there is a high degree of risk involved with trading. Also, our traders are real traders and may have financial interests in the companies discussed. Please see our Terms and Conditions for more information.
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