1/28 Best Idea For The Week Ahead

This is the biggest week of earnings season, all of the biggest names except NVDA are reporting this week. As I did last week I’m going to discuss the 5 big names reporting and a potential trade to put on using charts and option flows as our guide.

As for last week I highlighted 5 trades

1. NFLX - Selling a Jan 2025 320/300 put spread

2. TSLA - Buying a June 2024 190/160 put spread

3. INTC - Selling a Jan 2025 37.5/32.5 put spread

4. AXP - Risk reversal in Jan 2026 selling 155 puts and buying 240 calls

5. NOW - Selling a weekly 700/690 put spread

4 worked out going in the right direction, even Intel worked as it is down short term as the stock fell 12% on friday, but the stock is still nowhere near $37.5. That is why I focus on put sales mostly, you can be wrong and still profit.

The big winner was clearly the Tesla put spreads bought as Tesla was decimated and the June 190/160 put spreads I suggested were up nearly 80% in 1 week. Another big winner was the AXP risk reversal as American Express ended friday up 7% on a big dividend raise and was up as high as 9%. NOW closed the week at 769 and the weekly put spreads expired worthless for a nice gain. NFLX also ripped higher crushing the premium in those put sales in a great way. Overall great week.

If you want to see all the trades in the database on all these names and all the other names reporting this week, the link in Friday’s recap is where you can find them. The specific trades I note are all estimates on Friday’s closing prices, its hard to be exact because I don’t know where these names are opening on monday so focus more on the levels and if the trades interest you the prices could be the same or better or worse Monday, but barring some huge gaps up or down, should be around the numbers I post.

MSFT