dani face dani quote

Overnight Profits In Semis

Hey 5-Star Trader,

“Tuesday Trade” Journal: One of the most important concepts in trading is to review your work, and learn from the good and the bad. Identifying what is working is critical — to do more of it. So, to lead by example, each Tuesday, you’ll get a trade from my trading journal, in which I explain my thought process from start to finish. Trading is all about finding something that works, and applying it over and over again. That’s how you find trading success. So study up on this “Tuesday Trade” and let’s get to work.

For this week’s “Tuesday Trade,” I want to outline my trade in Marvell Technology (MRVL).

Not to be confused with superheroes, MRVL is an American company that specializes in the development and production of semiconductors. Last week, they were set to report their earnings and I knew I wanted in on the overnight action right before they released their numbers.

On August 26, I sold two iron condors of MRVL — SELL -2 IRON CONDOR MRVL 100 (Weeklys) 27 AUG 21 63/68/63/58 CALL/PUT @3.21 limit order (LMT).

The idea behind this trade was to cash in on MRVL implied volatility (IV). If everything went according to plan, there would be an overnight volatility crush and theta decay. If this were to happen, I could come back the next day and buy back MRVL for a 30-50% profit on the credit.

Pictured below is my entry for MRVL:

Because this was an earnings report trade, the move would have to happen overnight, making this a riskier trade overall. The total risk I was taking on was 1.2%.

The very next day, near market open, I was able to buy back MRVL for a profit — BUY +2 IRON CONDOR MRVL 100 (Weeklys) 27 AUG 21 63/68/63/58 CALL/PUT @2.06 LMT.

I love trading overnight moves because of how fast you can get results but, always remember to mind your risk!

Want to learn how to trade earnings? Take my “Quarterly Profits” course. There I will teach you the building blocks behind every earnings trade I take.

Up Next...

Growth Stocks On The Move, How To Capitalize

Hey traders!  This week, I wanted to highlight analysis from my friend and well-respected colleague, Mary Ellen McGonagle! She primarily focuses on stocks with a 2-week to 9-month horizon depending on market conditions. She has some great tips on how to capitalize on the current uptrend taking place! Check out her guest newsletter below to … Read more

Read More

How to Day Trade the SPX Using Butterflies

For today’s Five Star episode, I wanted to highlight what my colleague and fantastic trader, Allison Ostrander has been up to. She has been crushing it in our Simpler Options trading room, and her own Mastery service, using day trading butterflies on the SPX. I’ve loved watching what she’s doing, especially because, as you know, … Read more

Read More

AMD: Earnings in Focus

FAANG Earnings is Through: Is the FAANGover Next? We made it through FAANG Earnings Week, and saw volatile, market moving reports from the likes of Amazon (AMZN), Apple (AAPL), and Microsoft (MSFT). However, these moves, while significant, need to demonstrate follow-through for more continuation to the upside. Whether or not we will actually get that, … Read more

Read More

Subscribe Today!

Want to walk the path to trading success together? Join Danielle’s “Five Star Trader” E-Letter for market insights, tips, tricks, and special bonuses.

Sign Up Now
all-as-seen-on-logos