DPZ Trade on Jul 22, 2021 15:28 from Marius: Tradervue User Stock Trades.

Global Markets opened the week with continued selling but was aggressively bought and brought to new ATH's EOW. Market is being supported by buyers, stronger earnings growths, and technology growth with declining treasury yields. It is however on breadth deteriorations with new highs on specific leaders.

Fundamentals In Play Analysis

Domino's Pizza reported +0.24 EPS beat and the largest since the pandemic. Revenues were also positive. They don't provide guidance but there are notable comps trends within reports and within recent peers ie. Chipotle Mexican Grill. US comps came in at +3.5% w/ international comps at +13.5%. This is an improving and sustainable business change Y/Y. Investors were pricing in a comps decrease or lag due to re-opening but that has not been the case based on the data. Online ordering + digital order capabilities is a consumer behavioral change that is in strong place. Restaurant peers may be reporting similar trends going forward.

Quantitative Analysis

Intraday Fundamentals

RVOL 5.10
AVOL 594.71K
ATR 12.73
Beta 0.48
Volatility 4.23% 2.13%
Short Float 4.89%
Shs Float 38.55M
Inst Own 99.46%
Market Cap 21.01B

Options Statistics + Tape Reading + Order Flow + Dark Pool Levels + Flow Sentiment

SI 15.005
IV 28.36%
IVP 25%
P/C 0.467
VWAP 527.206

Option order flow is 15x and notable with A/AA call side concentration.

Weekly expiry calls A/AA noted w/ B/BB puts noted for upside momentum and price support.

Day 1 DP level at 538.82 + 536.50. (price actually traded below this EOW but will be a reference in the future)

4x more calls concentration vs puts.

Options Positioning

OI 3/114
VOL 542/104
Delta -.03/-.01
Theta -.30/-.18
Vega .02/.01
Gamma .00/.00
Prob T 6.68%/3.28%
Prob ITM 3.37%/1.66%
MMM +/- 15.049
IV Series 49.9%

Similar option order flow liquidity dynamics as CMG.

Earnings Statistics

Noting similar upside momentum moves in the past quarters.

Technical Analysis

Similar move as CMG but with more aggressive buying noted by the price expansion. This also affected PZZA a similar company providing additional sentiment and confirmation of DPZ's price action. Very very strong buying action when compared to prior days move within the last year.

520 was a risk management level I executed to take if off the table day 2. DP level marked above and stuffed day 2 which also was part of the reason to get flat.

Trade Risk + Position + Size + Allocation Management & Review

(A+) setup with (B/C) execution due to early exit. Will be evaluating additional risk if being put the shares at expiry. Looks to be a good trade as I will have shares that I can manage the next trading day based on the amount of contracts and capital. Have to get more information from the broker as this is unclear if I'm put shares and I don't have the margin requirement. Currently seeing that I can take hold of shares and or sell at market the next opening day without exiting the long put side.

Position/size/allocation were in parameters. Risk to premium is to be determined going forward.