Good morning, Power Profit Traders!
I hope you had a relaxing weekend, and you’re ready to take on the world this week, because we’ve got a lot to do.
To start, I’ll be LIVE at the open at 9:30 a.m. ET right here, so be sure to get in the room! We’ll discuss some things that will be on my radar — and should be on yours — this week.
Then, for all my new MIcrocurrency Traders, we’ll be circling up separately at 1 p.m. ET today, so be sure to keep an eye out for your invite! There’s some exciting stuff happening in the crypto world, so this is a MUST ATTEND.
Of course, while the peak of earnings season is now in the rearview mirror, there’s still plenty of action on the books.
Today, I want to show you the blue-chip stock buzzing in the options arena ahead of earnings, and where traders think the shares may be headed…
We’ll also talk about the stock attracting longer-term options activity of late, and how speculators are counting on a big-time break through possible round-number resistance.
High Hopes for Disney, Ford
Today’s Watchlist is based on the Morning Report’s Unusually High Options Volume tool — accessible to you for free by following these steps to download and use the TG Suite app.
This data is updated after the closing bell each session, and tells us which specific options — not specific stocks — saw the highest daily volume.
I like to lean on this list, in particular, on Monday mornings, as well as the Highest Open Interest list; this combo helps me gauge where the most action is at the start of the week.
It’s no surprise, usually, to find Ford Motor (F) options near the top of both lists, especially lately.
The stock has skyrocketed since mid-September, and now stands within striking distance of the round-number $20 level.
Ford shares haven’t been above $20 since 2001, yet the stock’s $20-strike call expiring Jan. 21 was No. 2 on our list, just behind Pfizer’s (PFE) $50-strike call expiring Nov. 19.
F stock chart courtesy of Morning Report tool
The other option that stuck out to me on our Watchlist was
Walt Disney’s (DIS) $180-strike call expiring Nov. 19.
That’s because Disney reports its fiscal quarterly results after the close this Wednesday, Nov. 10.
Assuming the traders bought the calls to open, they’re expecting DIS shares to claw their way out of the doldrums and top $180 within the next couple of weeks — which encompasses that earnings report.
So, it’s safe to say there are some Disney bulls betting on a solid quarter for the blue chip.
DIS stock chart courtesy of Morning Report tool
You can see on the chart above that the company’s last earnings showing in mid-August (green triangle) marked a short-term top for DIS shares in the $186-$187 area, which once again emerged as a ceiling back in September.
We’ll see on Thursday how DIS reacts…
In the meantime, hop in the room at 9:30 a.m. ET for another LIVE lesson, and if you’re a Microcurrency Trader, we have an ALL HANDS ON DECK session at 1 p.m. ET today, so be on the lookout for more info on that.
See you soon!
Tom Gentile
America’s #1 Pattern Trader
