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EDITOR'S NOTE: The Wall Street millionaire who called the rise of Apple, Amazon, and Netflix before they soared just shared his NEXT big call. Dear Reader, As a fragile peace holds in the Middle East... Insiders in Washington are pushing forward with a dramatic move, which could make this the last time a Middle East oil shock hits America. Put simply, Washington is backing a massive oil-industry breakthrough to save our country. It could unlock thousands of years of energy. (CNN says it’s "near-limitless.") And the White House is already auctioning off land rights, ready for a massive drilling campaign. But it's NOT oil they're drilling for. It's an energy source FAR more powerful. And though we have the oil and gas industry to thank for this discovery, this new superfuel has the support of both sides of the aisle. In fact, green energy supporters love it as much as oil and gas veterans. And right now, there are SIX Bipartisan Bills supporting it due in Congress. With gas and other energy costs soaring in 2026, it's no surprise this industry is being fast-tracked. I want to show you exactly where to move your money. In fact, I name the one company at the heart of this story right here, free of charge. Regards, Whitney Tilson Today’s editorial pick for you Spotify (SPOT) Stock May Have Plunged But the Smart Money Has Eyes On ItPosted On May 07, 2026 by Joshua Enomoto 
It’s no secret why Spotify Technology (NYSE: SPOT) has been one of the more disappointing names in the equities market this year. Since the January opener, SPOT stock has given up nearly 28%, a victim of less-than-stellar guidance and Wall Street’s concerns regarding a structural ceiling. Nevertheless, the smart money does seem at least intrigued by the possibility of shares swinging higher. Table of ContentsTo recap, Spotify’s second-quarter guidance left many investors wanting more. Specifically, the operating income of 630 million euros missed the analyst consensus of 673 million euros. Fundamentally, this miss on profit forecast raised immediate concerns that the benefits of recent service price hikes and cost-cutting measures have peaked. Further, such actions may lead to diminishing returns, which put more pressure on SPOT stock. Additionally, investors appeared to be hesitant regarding the streaming company’s slowing subscriber momentum. Management guided for 6 million net subscriber additions in Q2, falling short of the 302 million total premium subscribers the Street had anticipated. Many have interpreted this dynamic as the fault of aggressive pricing strategies hitting elasticity limits in mature markets. Finally, it’s difficult not to consider the advertising revenue slump that Spotify has endured, with ad-supported revenue declining for the second straight quarter. If users aren’t converting to premium while ad revenue is falling, the platform’s ability to monetize its free user base becomes a serious question. To avoid the potential implications, many have decided to jettison SPOT stock. Still, it might not all be bad news — especially because the smart money may be sniffing out the possibility of a contrarian comeback. Volatility Skew Reveals a Nuanced Picture for SPOT StockTo be upfront, there’s no one single indicator that answers all questions in the equities and options markets. Obviously, if there were, the profitable insight would have already been arbitraged to death, rendering the indicator useless. However, in my opinion, the one screener that’s the most useful in the public-facing financial space is volatility skew. By definition, the volatility skew identifies implied volatility (IV) across the strike price spectrum of a given options chain. Essentially, the skew acts as a sort of insurance market, with traders hedging their bets or buying leveraged upside exposure. These activities at scale tend to show a certain bias toward either downside protection or bullish optimism. The volatility skew is a way for retail traders to understand the smart money’s biggest concern: are these sophisticated market participants worried about an implosion or not being positioned appropriately for a major rip? In the case of SPOT stock, the skew for the June 18 expiration date shows a bimodal volatility regime — the market is simultaneously paying for downside protection while also tacking on leverage for a possible moonshot. Predominantly, the left-tail put IV swings sharply higher, suggesting that the main priority is mitigating further downside damage. However, it’s important to acknowledge the right tail, where call IV rises robustly (though at a slower clip than the risk tail). In my opinion, the skew is significant because if the smart money was that fearful of SPOT stock, we likely wouldn’t see the upside convexity. Sure, the pros are being rational with their hedging — but they’re also being hopeful. This is a PAID ADVERTISEMENT provided to the subscribers of StockEarnings Free Newsletter. Although we have sent you this email, StockEarnings does not specifically endorse this product nor is it responsible for the content of this advertisement. Furthermore, we make no guarantee or warranty about what is advertised above. Your privacy is very important to us, if you wish to be excluded from future notices, do not reply to this message. Instead, please click Unsubscribe. StockEarnings, Inc
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