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Episode Summary:Both Apple and Amazon are downBuy The Dip For Apple Stocks?Amazon stocks down after earnings, guidance miss Wall St. estimatesApple sinks on supply chain woesCGC,MJ,TLRY,GRWG,AMZN,AAPL2 week free trial no credit card required - https://pro.benzinga.com/Email onboarding@benzinga.comGuests:Michelle Krebs, Sr. Director of Automotive Relations, Cox Automotive; Executive Analyst, Autotrader 36:20Meet The Hosts:Dennis DickTwitter:https://twitter.com/TripleDTraderSpencer IsraelTwitter: https://twitter.com/sjisraelJoel ElconinTwitter: https://twitter.com/Spushttps://www.premarketprep.com/Disclaimer: All of the information, material, and/or content contained in this program is for informational purposes only. Investing in stocks, options, and futures is risky and not suitable for all investors. Please consult your own independent financial adviser before making any investment decisions.Subscribe to all Benzinga Podcasts at https://www.benzinga.com/podcastsGood morning. Good morning, Spencer Israel, Dennis take Joel is also here, but he is refusing to reveal himself. His camera's turned off. His microphone is on what his camera's turned off. He's I think he wants to do a grand reveal.We don't know what Joel looks like right now. He, uh, buddy buddies here. I promise. So we got a lot going on today. Michelle Krebs is our gas juice from Cox automotive. If you are joining us at 8 35 to talk through, uh, what happened in the automotive market, uh, in, in the last quarter of GM for Tesla, we'll talk about all that.We'll get her thoughts. Um, we'll take questions from our chat as always hit that like button, please. And thank you. Um, Joel, do you, are you gonna ever show us your face today? Are you going to get, just leave us hanging for the full hour? Hey Mike Rosta, Joel Rosta. Joel, we going to cover on the show today?Rosta. Joel, I likedMurley shirt. The Jamaican mechanics made it here. Throw it back reference. That's a throwback reference. All right. We should go and Vertu where's Enver ever. Does it ever, does it ever come on? No, he did not come on and doing it the way we should've done it. He's doing his camera virtually show him and we're come on and show you for a second.This is behind the scenes. You guys never met Anne Burke. And when you meet Enver, he doesn't want to do it. Come on in or in the scenes telling us what to do and to getting all the he's. The one that Andrew is the one that puts up all this nice, uh, everything that you see on your screen right now. Yeah.Um, agenda, everything. Those of you who are asking, oh, I have a special guests coming in. Apparently those of you who were asking, oh, I have special guests here too. There you are. Okay. Got to come over onto the screen. Come on. Special guests. Happy, happy to go. Awesome. We got a Pyre and we got a wedge. And what are you?Very fun. Happy Halloween. Yes. Dennis found a car, right? Okay. Have a good day. Kids are off to school. It's Halloween at school candy day. That's going to be exciting. Very exciting bye. To those of you who are asking who I am, what I am. I am the Benzinga safety inspector. This is a real position at Benzinga.Every company in our building is supposed to have a safety inspector whose job it is to, uh, be the leader during a fire drill. Uh, so usually it's Luke today does me. If we have a fire drill, we'll be ready. That's that's what I am dressed up as today. Or it could be Bob the builder, it look like you're ready for a construction job that want to come build my house.I need more help. Yeah, that, that that's you. Um, Hey, real fast before we throw it to the charts, Joe, uh, Joel, uh, that's your cue to share your screen roster Joel, before we do that, uh, I just want to. Tell everyone, we are doing a special promotion today around Benzinger pro. If you are a Benzinger pro subscriber, you will be eligible for this promotion.I don't, I'm not going to tell you what it is just yet. That's called a tease, but there is, we're doing a special Halloween promote. We got permission to give away something of, of real value. It's got nothing to do with Benzinga real value, not enough. Teads better than that. Uh, it's better than an NFC. Yes.And we're going to give it away only to a Benzinger pro subscriber. Uh, we will talk about it on live trading or maybe at the, at the end, at the end of this show, uh, maybe, maybe for, come on and do it, but, uh, um, want to message? Put that out there. Okay. Let's let's get the charts up on the screen. Joel, how are we doing this?Uh, good. Um, the M J N Dax is, are traded down 4 cents at the, at the current low of the move. Uh, w what should we be looking at? CGH uh, oh, wait a second. All these charts are looking the same. Holy macro. All these charts look the same. Give me, uh, give me, uh, what Gigi moves together. Yeah, relationships what's.Uh, what's the one Gigi WRG or something. She are, I mean, are any, alright, well, we, we will look at those. I said, P futures. That's what you guys want to hear. We're in the rag by 20 handles, we weren't, all-time closing high and then apple and Amazon, they, you know what they did all over the, the market. Uh, so we're down 20 handles and just kind of hanging out mid range.So it's going to be tough to get back to the old time closing high, but we'll figure out how to do it. Uh, crude that's down at diamond 82 71, just maybe going to be negative for the week, if that's possible. Uh, gold down 1160 at 1791, even silver in the ride by 19 twist called 20 cents at 2392 Bitcoin down by 3 80, 60 1,400.And the theory of Ethereum futures there up $52 and 25 cents. And then I hear they made a new house. Let's take a look at it today and make a new high. So$10,000 price target, Ethereum price target based on his feeling based on just hope, your hope. That's the whole trade. All right. Should we start? Let's start with apple here. Uh, so. If you recall, uh, Dennis was concerned, very concerned. He was nervous Purvis until this report. I tried to talk him off the ledge.Well, it's a good thing. You need to listen to me. Um, because my thinking was, look, apple had already warned. They already said a few weeks ago that they're going to cut their they're reducing their iPhone 13 shipment, uh, guidance by 10 million because of supply chain shortages. Well, it turns out that those same shortages that are hitting the iPhone are also hitting every other part of their business.So let's give you the numbers from yesterday and we'll bring the chart up on the screen. EPS was in wine sales. Didn't miss low eighties. That's very rare thing to say. 83.4 billion was what apple sales were. Last quarter. The street was expecting, uh, 84.8 billion. So they missed by about $1.5 billion there.Um, I fund revenue came in wider. Wearables revenue came in wider. iPad did beat, uh, services. Uh, I actually came in higher as well. Um, but the big takeaway here, it was from the CFO, uh, Luca, my street that the situation would not resolve itself by the end of the year, the supply chain impact will be larger than the $6 billion charge that the company just had to take.They said that yesterday as well, they're, they're taking a $6 billion charge, um, as, uh, because of, uh, supply chain was the end effect of that will be larger than the $6 billion charge for this current quarter. Um, and supply chain problems expecting, uh, affecting, uh, all other parts of their business, not just iPhone.So, um, I still maintain my bullish stance that this is going to be a great buy the dip, but, uh, obviously apple is, is in, is in the store. Um, you know, and we know I was nervous. I just couldn't get an iPhone. I go into Rogers and I'm trying, I'm the last guy trying to buy an iPhone and they're like, we hardly have any I-phones and you know, and then I put an order in and they said it should be in, in two weeks.It's six weeks later. And they finally call me, we have one iPhone and we suggest you take it because it's a, God knows when yours is going to come in. So the demand is there. We know the demand is still there. It's not a demand problem. It's simply a supply problem. They can't get the parts to get the iPhones out there.That's why I was nervous that they were going to miss. That's why I was nervous about the supply chain issues at apple. That's why I bought putts. So, and puts were cheap. Joel puts very cheap. Yeah. The one I bought multiple, I bought multiple putts. I did, I did. And I didn't even do the spread cause I was going to do the spread, but I was like, I just thought they were fairly cheap.Overall. One 50 putts, I got for a dollar sick. Dollar seven. I bought a couple of times in there, a dollar six, a dollar 10 right around there. And I went out just on a flyer. Um, so I had to myself with the one 50 putts, but I went out on a flyer and just in case it got really ugly. I just bought a lottery ticket, 1 43 putts.So those may go off, the board are worthless, but those were going for 15 cents. So I was like, you know what? This really gets ugly. 15 cents kind of like a lottery tickets. So on the put side, I don't think those are going to hit. Obviously we don't know. It's still trading. It sells the full day. So there's going to be some movement here, but it looks like it's kind of found its home down five bucks.I mean, overall, I didn't want, I don't want to sell my apple. I just want to hedge myself a little bit into this quarter. So it helps a bit puts will help a little bit. Did you? Oh, she did. Did this week. Yeah. I wanted to hedge through this earnings event. Wow. I wasn't hedging longterm. I'm still believer in long-term.I wanted a hedge through this earnings print. So the cheapest way to do that, it was cheap. One 50 putts. So thing was 1 50, 2 and a half was, you know, fairly cheap, a dollar. I thought it was. Yeah, this is what Apple's doing. It's been running into the reports. This is what it did off its last report. I mean, if you're going to buy this thing into the report and use this deal, that strategy, we talked about sell it the day before the report.I mean, how many people got jammed in this yesterday? I mean the actual day of the report, it makes the high, the move let's just look at is probably going to be reset of a trading range. Uh, got a hard bounce off the, uh, the, uh, after hours low. Let me tell you where that comes in. That's going to be our first area and feels, I guess it's going to, it's really thick and up here.Yeah. 1 44 42. It's going to, it's really thick and up at though at 1, 1 46 and a half, 1 46. Uh, if you look at just if your scalp out on a rally and it gets near 1 49 72, that was yesterday's high. That could, that could really happen. But man, it just looks like it's going to be a trading range, maybe 1 46 to 1 48 and a half today.Maybe the fireworks has already, I think so. So in and people are asking, I've got those putts, what's the best time to sell them. I mean, I can exercise the one fifties, but there's probably be a little bit of time premium left in it just because, you know, we do see some crazy reversals that time payment gets sucked out probably after the first half hour.So I'll probably, I'll probably dump them within if I'm going to sell. Um, obviously the one 40 threes will have they'll have some value, but probably I'll probably lose on those because it didn't fall that far. So I'll probably sell them in the first, like 20 minutes, half hour. But you know, you get a feel for what's apple does like where where's it.Does it open and start tanking right away. Does it open and start rallying right away? No, that all indicates there too. And obviously I'm, I rarely buy puts, and I was going to do a put-spread, but I just thought, like, when I was only paying just over a dollar, I was like, okay, I could have sold like a one 40 eights for like 50 cents and only 50 cents.But then I'm only a hedge for two bucks. So, and obviously when I bought the one 40 threes, I thought there was an outside chance. This could really get hammered. I, you know, and that was a very, I just thought 15 cents. I was like, it seemed pretty cheap to just take a shot, but obviously we'll see what happens.I don't know if those would be worth 15 cents even now, because it didn't fall out far. There might be some, there, there might be, it might be the play to get out actually at the opening print on those options. So, but anyway, I was nervous. I want to head through the print, so that's what I did. Nice job, Dan.It's very, very nice. It's not, you know, it was more of a hedging trade that I was this nervous about the apple and you know, what is very surprising. So let's go to Amazon. We're talking Amazon then to talk to spy overall because spice holding up well, yeah. Mean Amazon . The report hinged on a one thing.And that was supply chain problems. The Amazon report did not hinge on really any one factor, which I guess in the sense of makes it a little bit more concerning here. So the EPS for Amazon came in a very light, the, the reported earnings per share of $6 and 12 cents. We'll get the chart up $6 and 12 cents.First, an $8 92 cents estimate sales of one, 10.8 first one $11.6 billion. And the guidance was also a light. The guide Q4 sales, one 30 to one 40 billion versus a one $42 billion estimate. Um, the one good thing here was AWS cloud growth is still really strong cloud, uh, revenue, uh, rose 39% year over year.Uh that's that's, that's still good that that's, that's in Y with, uh, prior to growth rates and that's all looking good, but everything else was. Not great. Or they talked about increased labor costs. They talk about staffing shortages. They talked about supply chain problems. They talk about a deceleration in their advertising revenue, right?Um, their, their ad business, which is what they call like there are other business, right. Um, there was a lot here that was kind of wonky. Uh, there of course, spending really, really heavily on everything. They spending more on labor, they're spending more on content. Um, it, it was, it wasn't like a, I wouldn't call it a disaster report, but there was a lot of things to sort of go, huh.That's what I would say. A lot of things that make you go, huh. And there's not very many times you can say that about Amazon. It's been in this range. And I tell ya, my buddy, Bruce, he listens show sometimes has been selling. I talked about him like last year for the last year and a half, he has been selling.Calls and pucks both sides every single week. And he brings in like 75 bucks, a hundred bucks, 75 bucks, a hundred bucks, every. Every week. And I tell you, this doc has not done anything better than what Bruce has called, because when you're selling calls and putts, you want a sideways chart. And wow. I cannot believe how perfectly that has worked out for Bruce.I don't know if they're going to continue to work out that perfectly. And at certain points in times he has been assigned. And then what he does is he just flips around and writes the calls. So, I mean, that works so well, those strategies when you get the sideways market and that's what Amazon is in and 3030 500 has been the range for almost a year and a half now, which is absolutely incredible.And it continues to work so good job, Bruce, if you're less than just raking in that premium, this, I me…
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