As I was recording my latest Bank It or Tank It video yesterday, I came across something incredible, yet familiar.
You see, as I sat down to run the unusual options scanner on Microsoft (MSFT), I wasn’t sure what to expect.
The company just announced earnings the night before. And earnings reports can always be a roll of the dice. Sometimes a stock reports great earnings and sells off. Sometimes earnings are terrible, and the stock rallies anyway.
This time, though, MSFT popped 5% thanks to beating earnings expectations.
Even better, traders bought into the rally and followed the stock higher.
I loved seeing this. Why?
Because I have a whole options trading strategy built around earnings season, and the backbone of it is buying into strength on companies after strong earnings reports. (Stay tuned these next few weeks — I’ll have a lot more to say on this topic.)
These traders weren’t betting on a reversal of the big move higher. They’re positioned to profit if the stock continues to climb from here. That tells me they’re bullish not just on Microsoft, but are confident in the broad market making a recovery.
Needless to say, Microsoft was one of the stocks on my Bank It list today.
And today I’ll also talk about Block (SQ), formerly known as Square, Robinhood (HOOD) (just before earnings scheduled today), American Airlines (AAL), and Lockheed Martin (LMT).
Just click here or the thumbnail below to watch my latest Bank It or Tank It video…
Regards,Chad Shoop, CMT Editor, Quick Hit Profits