uploaded image

Earnings Season Trading Strategies Amid Market Volatility

By:Michael "Dr. Data" Rechenthin

Check out these bullish and bearish approaches to major stocks like Apple, Tesla and Coinbase

We asked two veteran traders for their opinions on the market—Tom “Sos Grande” Sosnoff and Tony “Bat” Battista.

Tom Sosnoff


Bullish Plays:

/ZB + /ZN: Long outright futures, backing it up with short puts

/6J + /6E: Short puts and covered calls in the mix

BA: Short puts paired with long call spreads

RTY - /ES: Pairs trade — long Russell, short S&P


Bearish Plays:

AAPL: Long put spreads

SPY: Selling call spreads

TSLA: Skewed short strangles

COIN: Short call spreads

With the election coming up, I'm capitalizing on the spike in implied volatility driven by uncertainty. The current price surge is all about the unknowns surrounding the outcome. This is a classic ‘buy the rumor, sell the news’ setup in action.


Tony Battista

I will most likely fade the market on the first move, believing it will be a head fake. In other words, whatever the initial reaction is, I’ll probably position myself in the opposite direction.

cherry_picks_oct29_image_1_.webp


This Week’s Earnings Reports From Big Names

Here are some of the key companies scheduled to report earnings this week. Download here or click the picture below to get the full list.

Yeserday, Oct. 29: SoFi (SOFI), AMD (AMD), PayPal (PYPL), Alphabet (GOOGL), Snap (SNAP), Pfizer (PFE), Reddit (RDT), Chipotle (CMG), Visa (V), McDonald's (MCD), BP (BP)

Today, Oct. 30: Eli Lilly (LLY), Microsoft (MSFT), Meta Platforms (META), Coinbase (COIN), Robinhood (HOOD), Etsy (ETSY), Roku (ROKU), Carvana (CVNA), Starbucks (SBUX), Caterpillar (CAT), Sunnova (NOVA), Riot Platforms (RIOT), ADP (ADP)

Tomorrow, Oct. 31: Uber (UBER), Amazon (AMZN), Peloton (PTON), Intel (INTC), Mastercard (MA), Apple (AAPL)

Friday, Nov. 1: FuboTV (FUBO), Chevron (CVX), ExxonMobil (XOM), Wayfair (W), Dominion Energy (D), Charter Communications (CHTR)


Digital segment: "6 Skills for Active Traders"

How do you craft a strategy-based portfolio? Register to claim your digital collectible and be part of this event.


cherry_picks_oct29_image2.webp



Two Trade Ideas


TLT ($216) Poor Man's Covered Call (DEC/NOV) $5.78 Debit

Tom Sosnoff’s long bonds here at the lows—using /ZB and /ZN futures. If you are looking to get a bit smaller, using TLT is a cost effective way to get lng bonds. A PMCC position provides a covered call type of risk profile, long an ITM 85 strike call in DEC as the synthetic stock position, with a short 93 call in the NOV monthly to offset the extrinsic value in the long.


trade_idea_1_oct_29.png



Long /M6E (EURO) $1.0808

All currencies futures are denominated in U.S. dollars, which means a long currency position is synthetically short dollars. /M6E is the micro euro contract, much smaller than /6E and trades in $1.25 ticks. Sitting near recent lows, a long contract only uses around $400 in buying power per contract.

trade_idea_2_oct_29.png


Sharing is caringForward this email to your friends so they can subscribe to our newsletters, too! Get weekly data-driven trade ideas with Cherry Picks and daily pre-market insights and trade ideas with Cherry Bomb.

Michael Rechenthin, Ph.D., (aka “Dr. Data”), managing director of research and development, has 25 years of trading and markets experience. He’s best known for his weekly Cherry Picks newsletter. On Thursdays, he appears on Trades from the Research Team LIVE.

Nick Battistatastylive director of market intelligence, has a decade of trading experience. He appears Monday-Friday on Options Trading Concepts LiveOn Wednesdays, he co-hosts Johnny Trades@tradernickybat

For live daily programming, market news and commentary, visit tastylive or the YouTube channels tastylive (for options traders), and tastyliveTrending for stocks, futures, forex and macro.

Trade with a better brokeropen a tastytrade account today. tastylive Inc. and tastytrade Inc. are separate but affiliated companies.





Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Related Posts

tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.  Options, futures, and futures options are not suitable for all investors.  Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on tastytrade.com/disclosures.

tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.

tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.

tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.

© copyright 2013 - 2024 tastylive, Inc. All Rights Reserved.  Applicable portions of the Terms of Use on tastylive.com apply.  Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastylive’s podcasts as necessary to view for personal use. tastylive was previously known as tastytrade, Inc. tastylive is a trademark/servicemark owned by tastylive, Inc.