Single-leg vs. Multi-leg: Which one is for you?

Have you ever found yourself stuck between single-leg and multi-leg options strategies? Single-leg options may be appropriate for when there are clearer market trends, while multi-leg strategies, like vertical spreads, can be handy when the market's got you second-guessing. --------------------------------------------------------------- Curious? Confused? Or utilized these strategies already? How do you decide between single-leg and multi-leg strategies? Which one do you use more frequently?

avatarAyKing
01-03
I closed $AMZN 20240119 137.5 CALL$  ,This is 1st leg of the bull call spread. In the weekly chart, after a good positive run, the price had form bearish candlestick in the recent weeks. This may suggest lost in upward momentum. In addition, the stochastic is also in the overbought region, which may also suggest the price is due for reversal. Since this trade is left with about 2 weeks, I have decided to close this trade to secure profits of about 13% of the invested capital within 6months.
avatarAyKing
01-03
I closed $AMZN 20240119 160.0 CALL$  ,This is 2nd leg of the bull call spread. In the weekly chart, after a good positive run, the price had form bearish candlestick in the recent weeks. This may suggest lost in upward momentum. In addition, the stochastic is also in the overbought region, which may also suggest the price is due for reversal. Since this trade is left with about 2 weeks, I have decided to close this trade to secure profits of about 13% of the invested capital within 6months.
avatarAyKing
01-03
I closed $TSM 20240216 90.0 CALL$  ,This is 1st leg of the bull call spread. In the weekly chart, the price had form a bearish candlestick after a good run. This suggest a lost in upward momentum. In addition, the stochastic is also in the overbought region, which may also suggest the price is due for reversal. In the daily chart, the price had traded below the 20MA and towards a support level of $99-$100. Therefore, I have decided to close this trade to secure profits of about 50% of the invested capital within 5months, so that I release buying power for other opportunities.
avatarTiger Wong
2023-12-22

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avatarOptionsBB
2023-11-22

OpenAI battle over, investors bearish on Microsoft

The latest Federal Reserve meeting minutes came out of the "eagle news", retailers reported mixed results. Federal Reserve officials expressed little interest in cutting interest rates anytime soon at their latest meeting, especially as inflation remains well above target, according to the latest minutes released by the central bank.Members of the Federal Open Market Committee (FOMC) remain concerned that inflation could persist or move higher and that more action may be needed. Monetary policy needs to remain "restrictive" until data show inflation moving convincingly back to the central bank's 2% target.Notably, the minutes said officials saw significant risks to the stability of the financial system and noted "high valuations in equities, housing and commercial real estate."The Chicago
OpenAI battle over, investors bearish on Microsoft
avatarJacksNiffler
2023-11-22

Why Nvidia Dropped? What is a preferred trading?

Options may be the best destination.$NVIDIA Corp(NVDA)$ released its earnings, which were very impressive, but not investor-friendly as the stock price experienced significant volatility after hours.Q: What is Nvidia (NVDA) Q3 2024 Earnings Call Transcript Summary?Both the earnings and guidance exceeded expectations by a large margin. One highlight was the data center revenue of $14.51 billion, surpassing the already elevated market expectations of $12.82 billion. The Q4 guidance for revenue is around $20 billion, while the market expectation is $17.9 billion. The only downside is that sales in the Chinese market are expected to "significantly decline."After hours, the stock in
Why Nvidia Dropped? What is a preferred trading?
avatarOptionsBB
2023-11-20

Options Spy | Strong orders suggest that Nvidia continues to be bullish this week

Investors digested signs of an economic slowdown as major retailers reported strong results.U.S. apparel brand GAP and U.S. discount retailer Ross Stores led retail stocks higher as earnings beat expectations. Energy stocks rose on Friday on the back of higher oil prices, reversing losses from the previous day, but ended down for a fourth straight week as investors fretted over signs of rising energy supplies and deteriorating global demand.Data this week pointed to downside risks to economic growth, growing hopes for a peak in Federal Reserve interest rates, the number of Americans continuing to claim unemployment benefits rose for an eighth straight week and U.S. retail sales fell for the first time in seven months in October, pointing to a slowdown in demand early in the fourth quarter.
Options Spy | Strong orders suggest that Nvidia continues to be bullish this week
avatarOptionsBB
2023-11-17

Options Spy | Apple's puts are extended, Microsoft continues to be bullish

Us Treasuries rose after economic data met expectations of a soft landing, reinforcing expectations that the Fed's interest rate hike cycle is over, and the main index of US stocks closed almost all higher on Thursday (16th).On the political and economic front, the U.S. Senate on Wednesday passed a two-stage appropriations stopgap spending bill proposed by House Speaker Jeb Johnson, which will be sent to Joe Biden to sign into law by a weekend deadline that risks extending the federal government until January.Reuters exclusively reported that Fed governors Philip Jefferson, Lisa Cook and Adriana Kugler wrote in a letter to Senator Rick Scott, It is unclear how long the Fed's balance sheet reduction process will last, but there is scope to continue, with the size of the balance sheet depend
Options Spy | Apple's puts are extended, Microsoft continues to be bullish
avatarOptionsBB
2023-11-16

Options Spy |IBM faces breakout resistance, institutional sell Call option orders

The stock market extended its November rally despite continued eagle feeding from Fed officials, economic data brought good news on cooling inflation, TGT department store surged on solid earnings, and Nvidia held back 10 straight gains after Microsoft introduced its own artificial intelligence chip.On the data front, the U.S. producer price index (PPI) fell 0.5 percent in October, the biggest monthly decline since April 2020, with the sharp slowdown largely reflecting lower gasoline prices.On the same day, U.S. retail sales fell 0.1 percent in October, less than the 0.3 percent drop expected by the market, indicating slowing demand. Wednesday's data underscored that inflation is moderating, cementing investor expectations that the rate-hike cycle may be over.On the political and economic
Options Spy |IBM faces breakout resistance, institutional sell Call option orders
avatarOptionsTutor
2023-11-16

0DTE strategy exploration 1: How much can 0DTE options earn when the market crashes?

Zero-day expiration options (0 DTE) are options that expire on the day of the trade. The rising volume of zero-date options proves that there is a demand in financial markets for additional flexibility in day trading.The 0 DTE option strategy can be more flexible in a specific market situation. However, the cost and risk of 0 DTE options can be higher compared to weekly and monthly expiration options.Special commend: How to achieve an 8%* annualized yield on your Tiger Vault Fund?0 DTE Options: Select strategy and strike priceThe implied volatility of 0 DTE options is on average higher than the implied volatility of regular monthly options. This means that, all else being equal, buyers of 0 DTE options pay an extra prem
0DTE strategy exploration 1: How much can 0DTE options earn when the market crashes?
avatarOptionsBB
2023-11-15

Options Spy | Nuclear services companies hit new highs and call options orders followed

The 2-year note fell 22 basis points to 4.82 percent, while the 10-year note fell 19 basis points to 4.44 percent.On the data front, the U.S. consumer price index (CPI) unexpectedly fell across the board in October, with the CPI rising 3.2% year-on-year, below analysts' estimate of 3.3%, and the core CPI rising 4% year-on-year, the lowest in more than two years, which means that inflation is moving in the right direction and investors will continue to believe that the Federal Reserve will not raise interest rates further.Special commend: How to achieve an 8%* annualized yield on your Tiger Vault Fund?The Wall Street Journal's Nick Timiraos, known as the "Fed's mouthpiece," wrote that the new data helped reassure investo
Options Spy | Nuclear services companies hit new highs and call options orders followed
avatarOptionsTutor
2023-11-15

[Options Strategy] The options strategy with the highest win rate on Nvidia's earnings report

$NVIDIA Corp(NVDA)$ Will report earnings on November 21, last quarter's earnings performance was bright, not only a record high revenue, the third quarter earnings guidance is also higher than analysts' expectations, Nvidia expects the third quarter revenue will reach $16 billion.Bank of America analysts said enterprise-generated AI could play a key role in Nvidia's profitability ahead of its earnings report, suggesting investors may be underestimating "the potential growth in AI adoption by enterprise customers, which Nvidia can uniquely capitalize on through its best-in-class enterprise partnerships."Special commend: How to achieve an 8%* annualized yield on your Tiger Vault Fund
[Options Strategy] The options strategy with the highest win rate on Nvidia's earnings report
avatarOptionsBB
2023-11-14

Options Spy | Institutions believe that SE gains are limited and sell call options

Investors awaited upcoming inflation data, talks by Federal Reserve officials and corporate earnings reports. Nvidia posted its ninth straight day of gains.Federal Reserve Chairman Jerome Powell warned that officials are "not confident" that interest rates are high enough to end the battle against inflation and that the central bank could raise rates further.Markets will keep an eye on several Fed officials speaking this week, They include New York Fed President John Williams, Chicago Fed President Austan Goolsbee, Fed Governor Philip Jefferson and Vice Chairman for financial Supervision Michael Barr.U.S. consumers' expectations for short-term inflation fell slightly in October, with a mixed view of their own finances, a New York Federal Reserve Bank survey showed on Monday.The U.S. consum
Options Spy | Institutions believe that SE gains are limited and sell call options
avatarOptionsBB
2023-11-13

Options Spy | Tesla shares have continued to come under pressure in the near term

The market continued to focus on corporate earnings and the Fed news, the bond market calm pushed the stock market higher, the 10-year US Treasury interest rate was little changed, the US technology stocks led the rally, Microsoft (hit a record high, TSMC surged more than 6%.On the political and economic front, Federal Reserve Chairman Jerome Powell dashed hopes of a rate cut on Thursday, saying in a speech at an International Monetary Fund event in Washington, D.C., that the Fed may have more work to do.Powell reiterated that "the Federal Reserve is committed to pursuing a monetary policy stance that is sufficiently restrictive to bring inflation down to 2 percent over time." We are not confident that such a position has been reached. If further tightening is appropriate, the Fed will not
Options Spy | Tesla shares have continued to come under pressure in the near term
avatarOptionsBB
2023-11-09

Options Spy | Options large order is optimistic that technology stocks continue to rebound

The S&P closed up 0.1 per cent on Wednesday, its eighth straight day of gains, the index's longest winning streak since November 2021, while the Nasdaq extended gains for a ninth session. Technology stocks were the best performers.On the political and economic front, cautious comments from several hawkish members of the Fed dampened optimism that interest rates had peaked, taking the steam out of the stock market rally, but according to the CME FedWatch tool, 90 percent of traders are sticking with no rate hike this year and 25 percent expect a cut in March.The Fed's Research and Statistics Division (R&S) celebrated its 100th anniversary on Wednesday, and Powell was on hand to deliver a speech but offered no clues about future monetary policy, and he will speak again at a panel mee
Options Spy | Options large order is optimistic that technology stocks continue to rebound
avatarOptionsTutor
2023-11-09

[Options Strategy] Is Q3 earnings a turning point for JD's share price?

$JD.com(JD)$ will release its third quarter 2023 financial results on November 15. Analysts expect Jingdong Group to achieve a total revenue of 246.9 billion yuan (YoY+1%) in 2023Q3, of which commodity revenue is expected to be 193.2 billion yuan (YOy-2%), and service revenue is expected to be 53.7 billion yuan (YoY+15%); Jd.com's retail revenue is expected to be 212 billion yuan (flat year-on-year).It is estimated that the Non-GAAP net profit of Jingdong Group is 9.2 billion yuan (YoY-9%) in 2023Q3, and the Non-GAAP net profit rate is down 0.4 pct year-on-year to 3.7%, of which Jingdong retail operating profit margin is expected to be 4.8%.The year-on-year growth rate of total revenue is expected to slow down, mainly considering the macro consumpti
[Options Strategy] Is Q3 earnings a turning point for JD's share price?
avatarOptionsTutor
2023-11-09

[Options Strategy] Can Alibaba buy bottom before earnings report?

$Alibaba(BABA)$ will release its financial results for the second quarter of fiscal year 2024 (natural year is the third quarter of 2023) on November 16. According to Bloomberg analyst estimates, Alibaba's fiscal 2024 second quarter revenue of 223.98 billion yuan, adjusted net profit of 40.072 billion yuan. There are 48 recent "buy" ratings from analysts with an average price target of $137.17.Analysts expect the revenue of Alibaba Taotian Group in FY24Q2 to reach 99.93 billion yuan, yoy+6.6%. 23Q3 The growth of overall residential retail consumption slowed down, the growth rate of online consumption was weak, the growth rate of online retail sales of physical goods declined compared with 2Q, and CMR still maintained positive growth year-on-year.
[Options Strategy] Can Alibaba buy bottom before earnings report?
avatarOptionsBB
2023-11-08

Options Spy | Tech stocks hit previous highs, is Amazon next?

Microsoft hit a record high on Tuesday, and shares of AMD, Broadcom and Intel rose about 2 percent ahead of the Chip Act funding. The S&P posted its seventh straight day of gains for the first time since November 2021.On the political and economic front, Federal Reserve officials spoke on Tuesday. Minneapolis Fed President Neel Kashkari said on Tuesday that policymakers had not yet won the battle against inflation and would consider tightening policy further if needed. Federal Reserve Bank of Chicago President Austan Goolsbee said officials did not want to "pre-empt" the rate decision.Fed Governor Sheila Bowman said she still believes the central bank needs to raise rates to contain inflation, but added that a spike in Treasury rates since September has led to tighter financial conditi
Options Spy | Tech stocks hit previous highs, is Amazon next?
avatarOptionsBB
2023-11-06

Options Spy | Institutions target Google and AMD in the rebound market

Signs of cooling in the labor market and services sector reinforced views that the Fed was ending its rate-raising cycle, with Treasury rates falling and the fear gauge, the VIX, seeing its biggest five-day drop in 21 months. The S&P 500 climbed above its 50-day moving average after rising 6 percent last week for its best week since November 2022.On the data front, the U.S. services sector expanded at its weakest pace in five months, job growth slowed and the unemployment rate rose to a nearly two-year high. Nonfarm payrolls increased by 150,000 in October after September's downward revision of 297,000, the unemployment rate climbed to 3.9 percent, and monthly salary growth slowed.On the political and economic front, the Federal Open Market Committee voted Wednesday to leave interest r
Options Spy | Institutions target Google and AMD in the rebound market
avatarOptionsBB
2023-10-28

Options Spy | Institutions bet big again on Tesla 5DTE options

Investors digested the earnings news, with Meta leading technology shares lower on a downbeat outlook for advertising demand. The S&P 500 fell more than 1 percent to its lowest close since May.Following the economic data, the 10-year Treasury rate fell 11 basis points to 4.85 percent, while the 2-year rate fell 7 basis points to 5.05 percent. A report from the Labor Department showed initial jobless claims rose to 210,000 in the week ended Oct. 21, above expectations of 208,000. The previous week's claims were revised to 200,000 from 198,000.Still, consumer spending continued unabated, with gross domestic product growing at 4.9 percent in the third quarter, the fastest pace since 2021, according to the Commerce Department, up from 2.1 percent in the second quarter and beating economist
Options Spy | Institutions bet big again on Tesla 5DTE options