The following are the notable earnings for this week:
AMD – earnings will be released on April 30, after-market, also one of the biggest competitors of NVDA. I guess this is the number 2 in chip making. From the last earnings conference call, AMD CEO Lisa Su is expecting a revenue of $3.5B in GPUs, this is more compared to the forecast of $2B from last quarter. I think in our opinion, this is achievable as AI spending from other biggest tech sectors such as MSFT, META and GOOGL were getting bigger every quarter.
From a technical standpoint, the daily chart shows a descending triangle. I’d like to trade AMD to the upside this week. I will be checking the call premiums with a strike at 170c / 175c / 180c on Monday. Theta and IV will be obviously padded so be ready.
SMCI – earnings will be released on April 30, after-market. My bull thesis here is the same as AMD. In my opinion, they will beat the earnings estimate as major tech companies are spending heavily on each AI program. Correlation is pretty simple, if this is a capex (capital expenditure) on every tech sector, therefore this will be a revenue for every chip maker. I will be checking the call premiums with the strike of 1100c / 1200c / 1300c
AAPL – earnings will be released on May 2, after-market. This is Warren Buffet’s favourite stock and I think all the bad news was all priced in, such as Iphone revenue decline in China amongst the others. I think this is due for a recovery as this stock has been sliding for quite awhile. I think the cloud revenue stream for this quarter will beat the estimates. I will be checking the call premiums with the strike of 175c / 180c.
COIN – earnings will be released on May 2, after-market. The last time we traded this was last February during its earnings release. We were on the call side (long) 2 days before the release and sold all the call premiums after the earnings were released. It worked perfectly. We will use the same strategy again as COIN is trying to reclaim its VWAP on a daily time frame. I think the recent rally of Bitcoin and other cryptos will help COIN improve its revenue target for the quarterly earnings. I will be looking at the call premiums with a strike at 260c / 280c.
DKNG – earnings will be released on May 2, after-market. Sports betting is getting hot as playoffs for NBA and NHL were just right in the corner. Aside from that, the economy I think is in silent depression. People are trying their luck through betting and it’s good business for sports betting companies. Looking at the daily chart of DKNG, 49 is the resistance level that needs to break. Once this gone, $60 is the next level, thus, we will be checking the call premiums with a strike of 50c / 55c /60c
Nothing is guaranteed here. What was written above are just trading ideas that I think will worked out if the market will not do something crazy. Or maybe if JPow won’t say anything about the possibility of another interest rate hike this coming Fed meeting (April 30 – May 1, 2024). Who knows. Must be nice if a rally happens this week due to strong earnings report. Traders with long positions must be in celebration once again.