Option Strategies: BA& TSLA

Selling For Premium
10-23

Hello everyone! Today i want to share some option strategies with you!

1.

Everyone and their mom is probably playing $Tesla Motors(TSLA)$ for earnings tomorrow. Count us in too!

We want shares, but also don't want to miss out on any potential upside. Trades on our radar:

- Sell a put in the 170-180 strike range (with 185 as an aggressive play) to pick up shares to go long

- Buy a 230/235 call credit spread, and possibly ratio it by selling more call contracts around the 260 strike

Expected move is 6.5%, but let's be honest ... TSLA is likely to experience a larger-than-expected move. Downside target to the low 200s and upside target above 230 (subject to change based on price action tomorrow).

Upside gap at 232. Strong volume support around 175, with a secondary level around 182/183.

TSLA hasn't been giving us a lot of clues as to which way it might move for earnings as it has basically been pinned to around 220 and trading flat last week and so far this week. We shall see what happens. Get your popcorn out and enjoy the show!

2.

Anyone taking an optionselling trade on $Boeing(BA)$ to play for earnings?

Thinking of selling puts at the Dec 20 exp 115 strike. That's basically its multi-year bottom and prior consolidation zone.

Risky play since BA is crap right now, but this is one of those "too big to fail" type of companies. R/R could be decent if this current sell-off trend has reached a max point and has already priced in crap earnings for today.

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