Hello everyone! Today I want to share some option strategies with you!
Going to wait until the last 10 minutes before market close to see if $S&P 500(.SPX)$ has any big spikes up like it did yesterday. Will sell a call spread targeting 4300+ on the sold strike during the spike.
Selling today instead of tomorrow to capture a higher strike. Betting on/assuming that SPX has another down move tomorrow (daily chart doesn't look constructive).
So far this feeling has played out nicely on $Amazon.com(AMZN)$ . Let's see if we tap 124 this week or close at that level or below by end of week.
Right now not much going on with $Manchester United PLC(MANU)$ . All the speculative buyers are out due to the lack of new ownership news. Been selling covered calls against our position at the 21-22 strike range.
Typically, news likes to break over the weekend. So, we're out of our covered calls by Friday and then re-sell on Monday after news has come out or not come out over the weekend.
Trade idea on: $Constellation(STZ)$
Earnings date: Oct 5 before market open
Expected move: 3.3%
Entry: Sell-to-open an Iron Condor on STZ (trade idea shown in attached screenshot). Aiming to double the expected move and sell strikes at (or beyond) those 2X levels. STZ tapped its ATH back in August and is currently in a downtrend in a currently bearish market. We have seen STZ flirt with a -10% earnings move before. Volume support around the 225-227 range.
Exit: The goal of this trade is to capture premium as profit. Buy-to-close or let expire worthless our position if the trade stays below the call and above the put strikes sold. If STZ breaks the call or put strike, then wait to see how the stock trades at market open before making a rush decision. If any big dip/pump looks like it might get bought/sold to where price goes back above/below strike of the jeopardized leg, then will watch price action to see if we can get out of the trade at minimal to no loss. Otherwise, buy-to-close out for a loss the jeopardized leg.
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