Profit Pregame

How Traders Played LAZR’s Big Day

How’s this for high hopes on LAZR?

In case you totally missed the momo stock action on Tuesday, Luminar Technologies (LAZR) gapped up more than 30% at the opening bell thanks to a killer deal with Nvidia (NVDA):

Text Description automatically generated with medium confidence
Headline via Barron’s, 11/9/2021
And judging by the action on my signature options scanners, some traders are banking big on this upside action in LAZR to continue in the weeks ahead.

Here’s an inside look at the near-instant surge in call activity that hit LAZR on Tuesday…

 

Check this volume spike…

Just mere minutes after the opening bell Tuesday morning, options volume on LAZR had already exploded to three times the daily average!

In absolute terms, that was nearly 45,000 contracts… and about 82% of them were calls.

(Not sure if I’ve mentioned it lately, but I’m a big, big call option guy – not so much on the puts.)

Text Description automatically generated
 

And it wasn’t just that my scanners were picking up a heavy call bias on LAZR as the stock gapped higher.

There was one specific, swing-for-the-fences strike that was drawing particular attention…

An “Orange Flag” on LAZR

Drilling down, a scan idea signaled on LAZR’s weekly Nov26 expiration $30-strike calls.

Roughly 1,000 contracts traded here on open interest of one – yes, 1 – single contract, so it was easy to deduce these were newly added positions:

Logo, company name Description automatically generated
However, check that “orange flag.”

LAZR has an earnings report coming up on Nov. 11, before these options expire, which means there’s some binary event risk involved in holding the contracts for any length of time.

This is a name I’ve traded before – with mixed results – and given the orange flag on the play here, this could be a possible day trade for the bold…

But there’s certainly no need to chase this name after the big Tuesday gap rally.

Especially with all the other ideas my eight custom scanners have been tossing out lately.

Watch me LIVE today at 2:00 PM Eastern!

Whether you’re one of my premium subscribers who simply can’t get enough of my live scanning trade ideas and commentary – or a newer member of Profit Pregame looking for more opportunities to see what my options strategy is all about – today’s your day!

I’m LIVE at 2:00 PM Eastern today in the Money Morning LIVE main room, and it’s open to everyone.

Visit the schedule right here to mark your calendar, and join the livestream starting at 2:00 PM!

 

First of all, you never know when things are gonna get hot during the livestream!

All jokes about that ill-timed fire alarm aside, though… I’ve got a very special afternoon session planned for everyone today at 2:00 PM.

I’m going to slow things down and explain exactly how I engineered my strategy for tracking $50K trades – plus, all the details on the double confirmation system that I just made available to my subscribers for the first time ever.

I hope to see you all at 2:00 PM Eastern today! Just click right here to join me.

I love trading and scanning live, and I want a huge crowd to see the kind of fire trades my scanners have been unearthing lately… no alarms necessary (fingers crossed).

Have a great morning, gang – I’ll see you then!

Andrew Keene
Founder, Profit Pregame

Community Tips

0 Comments
Inline Feedbacks
View all comments