My AMD options play for earnings week!

Situation as of 30 July 2023

- Price action is around 3 MA lines - MA5/MA20/MA50 ==> very easy for bulls or bears to push through taking 3 MA lines at one go!

- 108/109 has been a constant support past weeks! ==> Break below would mean quite some liquidity to push the sell down

- Options statistics show a variation of 7% to 8% range play this week ==> Interestingly, it coincides with levels of 105 and 100!! 

- Bull flag fib retracement shows we are hovering around Fib 38.2 ==> can still be bullish if there is a push

My approach/plays

- Positive reaction from earnings ==> Sold puts will be safe so not much concern there. Existing sold puts will be good. 

- Negative reaction from earnings ==> Options statistics play means gap down to 105 and 100 and given the liquidity overhead, likely to continue sell down to 95. ==> My aim is to own some AMD, so I will be going heavy into sold puts strike 95 and 100

- Post earnings will have IV crush (helps sold options)

Good luck!

AMD Daily Chart - 30 July 2023

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