Mon 5 Aug 2019 Morning Notes

On Friday toward EOD, I threw on a DE pre-earnings 16 Aug 160 straddle at +/- 6.5%. Going into the trade, I liked that the vol was reasonably priced heading into earnings yet stock was still off close to 7% in the prior 3 trading days over trade war concerns. Given the current macro climate, I think it makes a lot of sense to bookend vol trades by finding a trade-effected name with earnings and placing a trade around that name's earnings date to lock in a "vol put". Quite possibly one of the greatest risk/reward trades possible, options or otherwise.


Earnings: Yesterday AMC:
Today BMO: TSN

Other News: Market taking a bit of a nosedive as China not-so-subtly devalues its currency to rebut crazy Uncle Donny's tariffs; CARS imploding 30% on earnings/guidance

Follow Through Names to Watch: SQ, FLR, OLED, STX

GAINERS:

ALLK: +95% at 60.35 on Phase 2 drug data;

LOSERS:
CARS: -30% at 12.25 on earnings/guidance;

FLAT: 

Follow through watch:
 

Day before Y'day AMC: ANET, CC, ED, EOG, FLR, FSLR, GERN, GPRO, HIG, HLF, NE, OLED, PINS, SQ, TNDM, X
Yesterday BMO: CBOE, CVX, LYB, RACE, STX, XOM

Y'day Other News: Fed cut rates 25 bps yesterday, which wasn't a surprise but doesn't exactly speak to the strength of the economy; BYND announces secondary at 160/share; MYGN ripped during market hours on report of deal with UNH;

2 days ago AMC: ACAD, APA, CF, CRUS, CTSH, LRCX, MCK, MET, OLN, OXY, QCOM, TWLO, WDC, WLL, WMB

2 days ago BMO:  ABC, ADM, AKRX, CI, CLX, DD, GM, GPOR, HFC, MPC, MT, SHOP, VZ, W

2 Day Old News: Fed announcement this afternoon at 2pm;

TT Track of the Day: Initially I went with more yacht rock, Billy Ocean's Caribbean Queen. However, today feels more like a gritty tech house day. Jack Back - Grenade.. And apparently Jack Back is an pseudonym David Guetta uses for niche tech house tracks. His mainstream stuff sucks, but this is great