October 26th, 2022 Watch List

Stocks rallied for the 3rd session in a row on Tuesday, with the S&P adding another 1.6%. Asia markets closed mostly higher overnight while Europe indexes are mixed this morning. U.S. futures are pointing to a lower open, the Dollar and Yields are in the red while Oil and Gold are higher.

And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-127/

Earnings season is kicking into high gear with some big-cap tech names reporting last night including GOOGL and MSFT. MSFT reported mostly inline numbers while GOOGL missed estimated and warned Q4 maybe another disappointment. Both stocks are down in the pre-market and have put some pressure on stock futures. Certainly not a good start and the focus will now turn to AAPL, AMZN, and META later this week. Misses by those companies and/or rough guidance and markets may start heading back to lows. It was a strong rally yesterday with the SPY closing over that $380 handle and right at the 50dmab as the Dollar and Yields fell. May take a few days of churning before that breaks ands we can get over $390:

And that $350 handle continues to look like serious long-term support:

I closed my SPOT $105 weekly calls for some nice profits yesterday and took some of the gains to roll into some speculative calls into earnings. SPOT reported a strong quarter, besting expectations. Despite the beat, the stock is lower in the pre-market. A nice read here on the report:


Will need a huge move for my lotto calls today but do think the stock bounces and breaks into the $100s. May look to add some more lotto calls today:

WING reported a monster beat and raise this morning. Unfortunately I had October calls. Think this can test $160 or so in the coming days so may look to add some calls today. WING is such a great growth story and almost reminds me of DPZ in its infancy:

CMG also reported a strong quarter after the close yesterday though missed slightly on revenues. The stock is lower in the pre-market but think, like SPOT, it will reverse course. CMG has raised its prices to offset inflation and as the ingredient costs comes down, they should enjoy higher margins. Think this can come up and test the 50dma over $1600 in the next few sessions:

Still eyeing DECK and DXCM calls as well today for their earnings tomorrow.

Here are the analyst changes of note for today:

Shutterstock price target lowered to $62 from $70 at Needham
Needham analyst Bernie McTernan lowered the firm's price target on Shutterstock to $62 from $70 but keeps a Buy rating on the shares after its Q3 earnings beat. The company's reduced FY22 revenue outlook more than offsets the higher margin expectations, and he is now assuming a tough environment outside the U.S. and e-commerce persisting through the first half of 2023, the analyst tells investors in a research note. McTernan adds however that longer term, Shutterstock is well positioned as spending on digital advertising will continue rising as the world shifts online
Chipotle price target lowered to $1,760 from $1,900 at Stephens
Stephens analyst Joshua Long lowered the firm's price target on Chipotle to $1,760 from $1,900 and keeps an Overweight rating on the shares following the company's "better-than-expected" Q3 report. Long has raised his Q4 adjusted EPS view, noting that the company's guidance for Q4 comps to grow in the mid-single to high-single digit range "more or less brackets consensus expectations," but his FY23 adjusted EPS view has been lowered

Centene PBM loss an added headwind for CVS Health, says BofA
After Centene (CNC) announced that it has awarded a new pharmacy benefits management, or PBM, contract to Cigna's (CI) Express Scripts, BofA analyst Michael Cherny noted that CVS Health (CVS), which currently services a portion of Centene's non-medical channel drug spend, will lose this business starting in 2024. This contract loss is "a bit of a surprise" and adds "another headwind to what was already a challenged FY24," Cherny said. However, "this is one contract loss" and while disappointing he does not view it as reflecting "a broader problem at CVS," said the analyst, who adds that he still sees "a litany of enterprise growth opportunities for CVS." Cherny reiterates a Buy rating and $118 price target on CVS shares
Coinbase price target lowered to $75 from $95 at Compass Point
Compass Point analyst Chase White lowered the firm's price target on Coinbase to $75 from $95 and keeps a Neutral rating on the shares as he is updating his estimates ahead of Coinbase's Q3 earnings report due on November 3. Despite an increase to his Q3 revenue and adjusted EBITDA estimates, his full-year 2022 and 2023 estimates "fall significantly," driven by a more tempered outlook for a rebound in retail trading volumes, White tells investors in his earnings preview note

And here is what I am watching today: CMG, WING, SPOT, DXCM, DECK, AMLX, GWW, U, TWLO,, ROKU, NFLX,, WIX, and CI.

Let's have a great day!


JimmyBob (Scott)has been trading equities for over 15 years, a majority of which were OTC micro-cap stocks. He started trading high risk stock options over the past 7 years, and has proven winning trades in excess of 15,000%.

As one of the Co-Founders of optionmillionaires.com, Scott enjoys sharing his knowledge with other investors through timely blog posts, daily watch lists in the forum, weekly webinars, and helpful advice within the chatroom.

More Posts by JB: View All | Private Twitter Feed: Access Now! (For Diamond Members)