I’ve been trading ASML primarily using cash-secured puts (CSPs), entering and exiting positions since before its last earnings report.

While the company delivered solid earnings—beating analyst expectations on both revenue and profit—the management issued a notably conservative forward outlook. This cautious stance created uncertainty around future growth, geopolitical risks, and the potential for a demand slowdown, all of which triggered a negative reaction from investors.

This contrast—strong earnings but cautious guidance—has sent mixed signals to the market, explaining the choppy trading behavior we’ve seen in the stock over the past few weeks.

My strategy has been to sell CSPs when the stock dips and close them as the price rebounds, locking in profits. Now that the stock has pulled back again, I’m opening new CSP positions at strike prices I’m comfortable being assigned at. If ASML continues to decline and I’m assigned shares, I’m more than happy to hold them—I believe this industry giant is fundamentally strong and will eventually regain its upward momentum.