DPZ Trade on Oct 14, 2021 15:36 from Marius: Tradervue User Stock Trades.

Earnings season start with financials reporting. VIX decreased going into the reports with the market finding buyers and a key pivot opening into the quarter. Seasonal trends data show edge for further bid support and momentum into the EOY. Global macro overview looking to be improving with investor risk appetite seen in multiple areas of the market. There also has been a sentiment reset and shift in favor of the bid side.

Fundamentals In Play Analysis

Domino's Pizza reported a notable 0.14 EPS beat but lower compared to previous quarters. Revenue was at 998M slightly below consensus. US comps sales fell -1.9% which is showing a sign of operating business reversion as consumers move away from the pandemic trends. It is also trading at a high PE valuation of 35x which is on the higher range of the restaurant industry.

Quantitative Analysis

Intraday Fundamentals

RVOL 3.33
AVOL 455.14K
ATR 10.48
Beta 0.55
VIX 16.86
Volatility 2.93% 2.10%
Short Float 4.16%
Shs Float 36.59M
Inst Own 99.60%
Market Cap 17.69B

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

SI 3.991
IV 24.67%
IVP 13%
P/C 0.868
VWAP 477.779

Options Positioning

OI 324 578 128 678
VOL 581 344 207 163
Delta -.02 -.01 .04 .01
Theta -.15 -.08 -.35 -.10
Vega .01 .01 .02 .01
Gamma .00 .00 .00 .00
Prob T 5.12% 2.12% 7.63% 2.31%
Prob ITM 2.58% 1.07% 3.78% 1.15%
MMM +/- 10.932
IV Series 41.69%

Earnings Statistics

Technical Analysis

Trade Setup/Execution Grade + Risk (risk:premium) + Positioning + Size/Allocation Management & Review

(A/B) setup / (A/B) execution/. 1/0.5 RP, conservative/moderate positioning. 16% allocation. This was my first unbalanced delta active trade. I was long biased with the price action but short on the underlying fundamental reports. The stock also has high IO with a 35M shares float which probably played a role in the volatility of the move. The short side captured more theta of the trade but the long side was more in risk with the day 2 reversal. I went with the model and overall price action and held on the position. I'm noticing my orders have to be executed in a scaling matter as the market makers aren't executing my orders as fluidly. Scaling in dynamically adding/reducing risk will be key in future similar trades as shown in the next week of trading. (reviewing a week after due to travel and events)