EarningsBeats.com Digest

Published: Wed, 04/15/20

EarningsBeats.com Digest for April 15, 2020

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Dear EarningsBeats Digest Member,

Options Max Pain Video - a MUST see!

Every month, a few days before Options Expiration Friday (third Friday of each month), EarningsBeats.com Chief Market Strategist Tom Bowley identifies major indexes and individual stocks that could make significant moves (10-30%) into Friday's options expiration based on outstanding puts and calls. Yesterday Tom went over the SPY, QQQ, DIA amd IWM and then 11 short and 5 long candidates including the price levels each could potentially move to by Friday's expiration. This video recording, which is for all EarningsBeats.com subscribers, including those who are on Trial Membership, is about 30 minutes long and includes an explanation of the "Max Pain" calculation plus analysis of the four index ETF's and 16 individual stocks. So if you are currently NOT an EarningsBeats.com subscriber and would like access to this timely and valuable recording, you can sign up for our NO COST 30 day trial membership by clicking on the link below.

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Options Expiration Could Be Problematic For This Semiconductor

Last night, I conducted our monthly Max Pain webinar for April 2020 and I revealed several names that we should be watching as we head into options expiration on Friday. Advanced Micro Devices (AMD) has been on an absolute tear of late, rising from its 42.50 close in early-April to a close of nearly 55.00 on Tuesday. That's close to a 30% rise in less than two weeks. The problem? AMD has a "max pain" level of roughly 42.00. Could a solid semiconductor stock possibly lose 25% of its market cap in just the next few trading days? Well, I wouldn't exactly count on it, but I wouldn't rule it out either. I use max pain as a directional clue more than anything else. In other words, I believe the risk of trading AMD on the long side from now through Friday is HUGE. I wouldn't do it, I don't care how high it trades. Here's the current picture:

AMD is a very solid company and its chart looks better than most. But we're talking about a very short-term concern here. A trip back to 42.00 might seem a bit unrealistic, but could AMD test its key moving averages (green circle) in the upper-40s? I think so, especially if the overall market sees some profit taking into Friday.

Happy trading!

Tom Bowley

Chief Market Strategist

EarningsBeats.com
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