All eyes here are on banks tomorrow not just in premarket earnings but the BOE over the pond also.
I’d largely expect a majority of these earnings prints to be good. Banks like higher rates it gives them a reason to increase their revenue on finance charges. The ones that may struggle would likely be the large mortgage reliant lenders. As we have seen for last several months declines in mortgage applications and new mortgages this also indicates a decline in refinances.
I’m sure we will break them down here in AM.
Couple things I wanted to note from today. Once again when I play these I look for ones that can hold or be divergent premarket this is always my most important part of the day. Not just on days like today where SPY tanks but everyday. If SPY is moving up and a miss is still moving down it’s probably going to keep doing so. If SPY is red and a beat is holding stronger it’s going to hold and even start to take positive movement exponentialy. This was evident premarket with DPZ and PZZA.
They both pulled down a little with CPI drop but not a whole lot like the rest of the market for most part. I typically move the line up of my tickers on my watch list to have my post er plays and SPY right by each other.
Secondly, I know everyone loves trading SPY I almost never trade it or SPX unless it’s a solid down trend or up trend day and clear cut. So I wanted to point out some plays that small ports can play here and be largely more profitable than SPY that are vastly easier to trade and less violent.
DPZ out of the little drop at open I was able to get fills on 325c for around 2.00 that’s less than an ATM SPY call or put. And I didn’t have to pick the direction there was a high likelihood that it would run especially if market bounced even a little after that huge drop. Then once we had big rebound it really pushed it. Resulting in I sold them between 8.50 to 10 dollars a call. This can 3-4 times a small account in a day even if being conservative and selling sooner or further OTM calls.
BLK this is a little tougher play. I didn’t play it because I was all eyes on pizza tickers but did watch it. It pulled down some with SPY but not terrible. Went from a bit green to drop on CPI and tried to bounce several times premarket then at open started to become resistant and again once SPY bounced it was on jet fuel. I looked 520c here that would have been about 10 dollars OTM at open. They could have been picked up for 3-4 dollar range from 9:30-9:40 lots of times people are trying to bail out of their gambles they took pre earnings at open. These calls were worth 46.95 at close. That’s a 100x return in a day. And if you look at the chart today would have been a really easy chart to trade.
Sorry to be long winded here in this thread but want everyone to make money big ports small ports and In between. On safe plays that are harder to get blown out.
