Option Strategies: ANF

Selling For Premium

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

1.

Sure. We have a long position on $Abercrombie & Fitch(ANF)$ . Selling the 210 strike and buying the 220 strike as a hedge, thus turning this into a call spread for credit (premium) received.

If ANF happens to breach 210 by Friday expiration, then most likely the 220 calls would be worth more than was bought for.

Hence, could break up the spread and sell the 220 calls for profit, keep the [short] 210 calls in play and that would then be married up to the long position to turn the position into a covered call position.

If ANF doesn’t hit 210 by Friday expiration, then the spread trade ends up expiring for max profit.

Ideally, we would want ANF to move up for earnings and breach 210, but would be very happy for ANF anywhere above where it is now. Obviously we don’t want ANF to dump as that would hurt our long position, but we would still make money on the call spread trade if it does dump.

2.

Got a long position on $Abercrombie & Fitch(ANF)$ heading into earnings. Have no clue which way this will move. Gonna sell a call credit spread - Nov 29 expiration 210/220 strikes.

Will exit long position at 210 short strike (turning it into a covered call) and sell the 220 calls for profit if ANF miraculously closes that high to end the week.

Am a bit worried that ANF has been pumping heading into earnings. Am obviously hoping that ANF crushes it for earnings and pumps up! 🤞🏽🙏🏽

Follow me to learn more about analysis!!

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Today i want to share some option strategies with you!</p><p></p><p>1.</p><p>Sure. We have a long position on  <a data-mention-id=\"ANF\" class=\"teditor-mention\" data-mention-name=\"Abercrombie &amp; Fitch\" href=\"https://ttm.financial/S/ANF\">$Abercrombie &amp; Fitch(ANF)$</a> . Selling the 210 strike and buying the 220 strike as a hedge, thus turning this into a call spread for credit (premium) received.</p><p>If ANF happens to breach 210 by Friday expiration, then most likely the 220 calls would be worth more than was bought for.</p><p>Hence, could break up the spread and sell the 220 calls for profit, keep the [short] 210 calls in play and that would then be married up to the long position to turn the position into a covered call position. </p><p>If ANF doesn’t hit 210 by Friday expiration, then the spread trade ends up expiring for max profit. </p><p>Ideally, we would want ANF to move up for earnings and breach 210, but would be very happy for ANF anywhere above where it is now. Obviously we don’t want ANF to dump as that would hurt our long position, but we would still make money on the call spread trade if it does dump.</p><p></p><p>2.</p><p>Got a long position on <a data-mention-id=\"ANF\" class=\"teditor-mention\" data-mention-name=\"Abercrombie &amp; Fitch\" href=\"https://ttm.financial/S/ANF\">$Abercrombie &amp; Fitch(ANF)$</a>  heading into earnings. Have no clue which way this will move. Gonna sell a call credit spread - Nov 29 expiration 210/220 strikes.</p><p>Will exit long position at 210 short strike (turning it into a covered call) and sell the 220 calls for profit if ANF miraculously closes that high to end the week.</p><p>Am a bit worried that ANF has been pumping heading into earnings. Am obviously hoping that ANF crushes it for earnings and pumps up! 🤞🏽🙏🏽</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/4a49c3665bc0e4b02c8db19b40c05ca5\" tg-width=\"900\" tg-height=\"238\"></p><p></p><p><em>Follow me to learn more about analysis!!</em></p></body></html>","htmlText":"<html><head></head><body><p>Hello everyone! Today i want to share some option strategies with you!</p><p></p><p>1.</p><p>Sure. We have a long position on  <a data-mention-id=\"ANF\" class=\"teditor-mention\" data-mention-name=\"Abercrombie &amp; Fitch\" href=\"https://ttm.financial/S/ANF\">$Abercrombie &amp; Fitch(ANF)$</a> . Selling the 210 strike and buying the 220 strike as a hedge, thus turning this into a call spread for credit (premium) received.</p><p>If ANF happens to breach 210 by Friday expiration, then most likely the 220 calls would be worth more than was bought for.</p><p>Hence, could break up the spread and sell the 220 calls for profit, keep the [short] 210 calls in play and that would then be married up to the long position to turn the position into a covered call position. </p><p>If ANF doesn’t hit 210 by Friday expiration, then the spread trade ends up expiring for max profit. </p><p>Ideally, we would want ANF to move up for earnings and breach 210, but would be very happy for ANF anywhere above where it is now. Obviously we don’t want ANF to dump as that would hurt our long position, but we would still make money on the call spread trade if it does dump.</p><p></p><p>2.</p><p>Got a long position on <a data-mention-id=\"ANF\" class=\"teditor-mention\" data-mention-name=\"Abercrombie &amp; Fitch\" href=\"https://ttm.financial/S/ANF\">$Abercrombie &amp; Fitch(ANF)$</a>  heading into earnings. Have no clue which way this will move. Gonna sell a call credit spread - Nov 29 expiration 210/220 strikes.</p><p>Will exit long position at 210 short strike (turning it into a covered call) and sell the 220 calls for profit if ANF miraculously closes that high to end the week.</p><p>Am a bit worried that ANF has been pumping heading into earnings. Am obviously hoping that ANF crushes it for earnings and pumps up! 🤞🏽🙏🏽</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/4a49c3665bc0e4b02c8db19b40c05ca5\" tg-width=\"900\" tg-height=\"238\"></p><p></p><p><em>Follow me to learn more about analysis!!</em></p></body></html>","text":"Hello everyone! Today i want to share some option strategies with you! 1. Sure. We have a long position on $Abercrombie & Fitch(ANF)$ . Selling the 210 strike and buying the 220 strike as a hedge, thus turning this into a call spread for credit (premium) received. If ANF happens to breach 210 by Friday expiration, then most likely the 220 calls would be worth more than was bought for. Hence, could break up the spread and sell the 220 calls for profit, keep the [short] 210 calls in play and that would then be married up to the long position to turn the position into a covered call position. If ANF doesn’t hit 210 by Friday expiration, then the spread trade ends up expiring for max profit. Ideally, we would want ANF to move up for earnings and breach 210, but would be very happy for ANF anywhere above where it is now. Obviously we don’t want ANF to dump as that would hurt our long position, but we would still make money on the call spread trade if it does dump. 2. Got a long position on $Abercrombie & Fitch(ANF)$ heading into earnings. Have no clue which way this will move. Gonna sell a call credit spread - Nov 29 expiration 210/220 strikes. Will exit long position at 210 short strike (turning it into a covered call) and sell the 220 calls for profit if ANF miraculously closes that high to end the week. Am a bit worried that ANF has been pumping heading into earnings. Am obviously hoping that ANF crushes it for earnings and pumps up! 🤞🏽🙏🏽 Follow me to learn more about analysis!!","highlighted":1,"essential":1,"paper":2,"likeSize":47,"commentSize":0,"repostSize":0,"favoriteSize":0,"link":"https://ttm.financial/post/375131628449944","repostId":0,"isVote":1,"tweetType":1,"viewCount":502,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":["ANF"],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":true,"length":1228,"xxTargetLangEnum":"ORIG"},"commentList":[],"isCommentEnd":true,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/375131628449944"}