Option Strategies: ZM, BIDU& TSLA

Hello everyone! Today I want to share some options strategies with you. Hope it can be helpful to you.

Trade idea on: $Zoom(ZM)$

Earnings date: Monday, Aug 21, after market close

Expected move: ~9%

Entry: Sell-to-open puts at the Aug 25 expiration and the 60 (or slightly lower) strike price. Expected move places downside to 60 (as of Friday's closing price). Looking at the daily chart on ZM, we can clearly see that ZM has long-term bottom support established at 60, and has not broken below it since its IPO back in 2019. We are wondering if institutions will continue to defend the 60 level, or if this earnings will be the one to finally send it back below 60.

Exit: Buy-to-close the position for profit after earnings to take advantage of IV crush if ZM stays above strike price. If the underlying hits our strike post-earnings, then we will most likely roll the position to obtain a lower strike for potential entry/assignment. The IPO price was 35, and we would be very surprised if ZM dropped that low (or even lower than 50).

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Trade idea on: $Baidu(BIDU)$

Earnings date: Tuesday, Aug 22, before market open

Expected move: ~6%

Entry: If we decide to play this, we will play a strangle and sell-to-open the Aug 25 expiration ... puts at 110 or below and calls at 145 or above (which is basically double the expected move in both directions). Expected move places downside to 118 and upside to 132 (as of Friday's closing price). As mentioned before, this market environment makes us more cautious about bigger moves, so we will sell well outside the expected move range.

Exit: Buy-to-close the position for profit after earnings to take advantage of IV crush if BIDU stays outside our strike prices. We don't really want assignment, so we will close out all positions if in profit or loss.

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Our quick-hitOptionsTrading plan for this week:

Selling covered calls with 8/25 expiration on existing positions: - $Tesla Motors(TSLA)$ 227.5c -

$Manchester United PLC(MANU)$ 24c -

$Block(SQ)$ 62c -

$United Continental(UAL)$ 52c -

$ProShares Bitcoin Strategy ETF(BITO)$ 14.5c -

$SoFi Technologies Inc.(SOFI)$ 9.5c -

$PayPal(PYPL)$ tbd

Selling options with 8/25 expiration to play earnings: -

$Zoom(ZM)$ 59p/80c strangle -

$Baidu(BIDU)$ 110p/145c strangle -

$Snowflake(SNOW)$ 120-125p -

$Autodesk(ADSK)$ 165p -

$Advanced Micro Devices(AMD)$ 104p (already have these in-play for this week, so will probs not play $NVIDIA Corp(NVDA)$ )

That’s all my sharing!

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