A Mysterious Trader Just Sold 80,000 Puts on PINS
Liz here, with a brand new, mysterious trade from Mark!
I know these immense institutional block trades aren’t THAT cloak-and-dagger (it’s some boring algorithm from Goldman Sachs), but I like to imagine they’re made by some evil mastermind in a subterranean Bond fortress. Don’t you?
Mark suspects that Ernst Blofeld is onto something here, and he wants to put on a quick-hit, piggyback call trade. Go here to grab it.
Mark ALSO (and this is important) just finished teaming up with CJ for the Energy Summit this morning (another event that should have been in a Bond movie) and he’ll be regularly guest starring in Night Trader for the next month as CJ trades a special energy portfolio.
You can sign up for Night Trader and get all those fresh energy trades right here.
In the meantime, Mark wants you to go long on Pinterest…at least in the short term. Here’s the trade.
The Mystery of the Engulfing Candle
Basically, recession be damned, someone with a sinister white cat just sold 80,000 puts on Pinterest Inc (NYSE: PINS).
I looked up the Z Score of PINS, just to be contrary, because I always smell blood in the water with big tech stocks, but lo and behold, it’s above 17 with lots of money and comparatively little debt. It’s a BLEH non-starter.
“Is the bottom in?” Mark muses. “This trader thinks so – they are willing to buy 8 million shares for $17.45.”
“PINS has earnings the week of Aug. 4,” Mark Slacked me. “The stock may be ready to bounce – we saw a huge engulfing candle yesterday, holding today.”
That leads us directly to the trade, which is here:
DOLLAR SLOTS: MARK
Action to Take:
Buy to Open PINS July 15, 2022 $29 calls for $2.00 or better
Enter as a Good til Canceled (GTC) order
I’ll be back tomorrow with a new BLEH stock for you – it won’t be PINS, though I had hoped for a brief, shining moment that it might be.
Congratulations on your 4 wins yesterday, by the way. I suspect there are more where those came from, as the Dow continues to plummet.
July 06 2022