We’re seeing a bit of a rebound in the markets this morning after they once again got crushed yesterday. Partially due to a better-than-expected economic report on Durable Orders, we’ll look for the highest profile companies with fresh earnings out that appear set to move this morning.
TSLA and MSFT both dropped their reports in after-market hours yesterday, and look to be our most promising potential targets today.
The tech sector as a whole was among the hardest hit in the recent spate of losses for domestic stocks, with many, if not most of its players being beaten back to unsustainably low levels, so the timing is actually quite good for some solid movement off of these earnings reports.
We expect a market recovery to provide us with plenty of chances to take advantage of all of these underpriced stocks as they rebound in the days and weeks ahead.
TSLA Weekly $310-317.50 Calls
MSFT Weekly $104-107 Calls
Despite a tumultuous day for the markets yesterday, and mostly everything taking on a bearish characteristic, we’re still going to go bullish on DAL in the wake of the company’s quarterly earnings report released this morning.
Despite rising fuel costs, the company revealed that profits soared well past expectations as a result of increased demand leading to higher ticket prices.
As we always try to do when a company posts a solid beat, we’ll designate a range of options to place on watch, in this case the DAL Weekly $49.50-52 Calls. We’ll go ahead and track these into the end of the week. DAL stock was already oversold, getting hammered for weeks, so this report may be just the catalyst needed to effect an impressive reversal.
SPDR S&P 500 ETF (SPY)
We had great success with the SPY earlier this week, and we want to come back to it this morning in the wake of the markets getting crushed yesterday. With the amount of uncertainty and potential volatility out there, we want to set ourselves up to have an active idea no matter which way the winds blow.
Should the SPY fall below $276, we will target the SPY Weekly $277 & $276 Puts. If it pulls above $276 we will focus on the $276 and $277 Calls, so either way, we should be able to quickly identify the proper course once trading commences. .