How to use combo options to trade earnings season?

Combo options are option trades constructed from multiple contracts of differing options. Combo options enable more precise risk management techniques, offer the potential for higher returns, and reduce the margin requirement. ---------------- How do combo options work? Will you use combo options to trade upcoming earnings season?

avatarTiger V
11-19 20:09

Investment Reflection: Poor Man’s Covered Call on TLT

Overview of Strategy On November 18, 2024, I executed a poor man’s covered call (PMCC) on the iShares 20+ Year Treasury Bond ETF (TLT) $iShares 20+ Year Treasury Bond ETF(TLT)$  , employing a diagonal spread strategy. This involved: Buying a long-dated call option with a strike price of $84 and a maturity date of April 17, 2025, at a cost of $745 per contract. Selling a short-term call option with a strike price of $92 and a maturity date of November 29, 2024, earning a premium of $21 per contract. At the time, TLT was trading at $89.80, and the strategy was based on a short-term bullish outlook, leveraging seasonality and technical factors that suggested a potential year-end bounce in Treasury bond prices. Analysis of the Trade The Rationale:
Investment Reflection: Poor Man’s Covered Call on TLT
avatarTiger V
09-12

Investment Reflection: WBA Call Option Roll-Over Strategy

On 11 September 2024, I executed a roll-over of two contracts of Walgreens Boots Alliance (WBA) $Walgreens Boots Alliance(WBA)$  call options, extending the maturity date from 27 September 2024 to 25 October 2024. This move allowed me to collect an option premium of USD 23 per contract. This strategy was based on Walgreens’ current challenges and long-term potential, despite its recent difficulties in the market. Market Environment and Rationale Walgreens Boots Alliance has had a turbulent 2024, with the stock losing nearly 68% of its value since the start of the year. The company's dividend reduction—after nearly five decades of increases—highlighted its struggles in a competitive environment dominated by online
Investment Reflection: WBA Call Option Roll-Over Strategy
avatarBarcode
07-29
$NVIDIA Corp(NVDA)$ $Amazon.com(AMZN)$ $Apple(AAPL)$ $Alphabet(GOOGL)$ $Meta Platforms, Inc.(META)$  🌊‼️🌟Tech Tidal Wave: Dive Into Puts Before the Tech Tsunami Hits! 🌊💥‼️ Kia ora Tiger traders, Ready to ride the wild waves of the tech market? 🌪️ As August draws to a close, the tech stocks are about to face a perfect storm, making it prime time for put options! Think of it as preparing your surfboard for the massive swells—there’s no better time to catch the ride of your trading life! 🏄‍♀️🌟 Why is this end-of-August period so special, you ask? Well, imagine the market's re
avatarTiger V
07-09

Investment Reflection on Ford Vertical Put Option Strategy

Overview On June 13, 2024, I initiated a vertical put option strategy on Ford (F) $Ford(F)$  by selling a put option at a strike price of $11.82 and buying a put option at a strike price of $10.82, collecting an option premium of $26 per contract. This strategy had a maturity date of July 19, 2024. Recent developments in Ford's EV strategy played a significant role in this investment decision. On July 8, 2024, I decided to close the position by paying $2 per contract. Rationale Behind the Strategy The motivation behind this strategy was primarily driven by Ford's announcement regarding adjustments to its electric vehicle (EV) strategy. Ford decided to discontinue its "EV-certified" program due to declining demand and instead allowed all dealersh
Investment Reflection on Ford Vertical Put Option Strategy
avatarTiger V
07-09

Investment Reflection on GOLD Vertical Put Option Strategy

Overview On 31 May 2024, I engaged in a vertical put spread strategy on GOLD $Barrick Gold Corp(GOLD)$   by opening two contracts. This involved selling put options at a strike price of USD 17 and simultaneously buying put options at a strike price of USD 16, collecting an option premium of USD 33 per contract. The contracts were set to mature on 19 July 2024. Subsequently, I closed the position on 8 July 2024 by paying USD 20 per contract. Strategy Analysis The vertical put spread is a limited-risk, limited-reward strategy that aims to capitalize on stable or slightly bullish market conditions. By selling the higher strike price put and buying the lower strike price put, the maximum potential profit is limited to the net premium collect
Investment Reflection on GOLD Vertical Put Option Strategy
avatarTiger V
07-08

Investment Reflection on Marathon Digital Holdings (MARA) Vertical Put Option Strategy

Overview of the Option Strategy On July 5, 2024, I initiated a vertical put option strategy on Marathon Digital Holdings (MARA) $Marathon Digital Holdings Inc(MARA)$  by opening five contracts. This involved selling put options at a strike price of $16 and simultaneously buying put options at a strike price of $15, with a maturity date of August 16, 2024. For this strategy, I collected a premium of $25 per contract. This vertical put spread, often referred to as a credit spread, is a bullish strategy that profits if MARA's stock remains above $16 at expiration. Key Drivers Behind the Strategy 1. Superior Mining Efficiency: Marathon Digital Holdings stands out in the competitive landscape of cryptocurrency mining due to its efficient revenue g
Investment Reflection on Marathon Digital Holdings (MARA) Vertical Put Option Strategy
avatarTiger V
06-06

Investment Reflection on F Vertical Put Option Strategy

Overview of the Strategy On June 5, 2024, I initiated a vertical put option strategy on Ford $Ford(F)$  , involving the following transactions: - Sold put options at a strike price of $11.82. - Bought put options at a strike price of $10.82. - Collected an option premium of $26 per contract. This strategy, known as a bear put spread, is typically used when expecting the stock price to decline or remain neutral within a specific range. Ford’s Performance in May Ford recently reported robust vehicle sales for May, which could significantly impact the stock price and, consequently, the outcome of my option strategy: - **Total vehicle sales:** 190,014 (up 11.2% YoY) - **Electric vehicle sales:** 8,966 (up 64.7% YoY) - **Hybrid vehicle sales:** 17,63
Investment Reflection on F Vertical Put Option Strategy
I like to double my profit by selling a put and call vertical with a delta of 0.15. I don't need max profit, I just need max probability of collecting premium. I tends to use a wide spread to collect max credit. So, for Tesla, I will do like 190/200 or 195/210 for 1-2 weeks option And a 140/120 put option. I will go in with 10lots on call and 10 lots on put For 1 week option. This will give me about $1000 per week income. I don't own the shares and will not want to own any share given my profit is $4000 a month with a capital outlay of only $20000-$30000. As long as Tesla don't breach this 140-190 range, I am safe. And doing it on a week option also make this fairly safe. Even if it does breach on side, the other side will still be in profit to minimise the lose. 

Unusual Option Talks? Nvidia Towards 540?!

The market saw a Monday rebound, with tech stocks leading, particularly $NVIDIA Corp(NVDA)$ with increased options trading, ranking first despite its higher stock price. Strong bullish sentiment persists, reflected in call options around $540 and put options at $485 for NVDA. While $Boeing(BA)$ ‘s significant decline spurred more active put trades around $220 and $225. Bitcoin awaits Wednesday news, while $Marathon Digital Holdings Inc(MARA)$ and $Coinbase Global, Inc.(COIN)$ exhibit active and rising trading activity and implied volatility (IV). Despite this, there's perceived profit potential in employing a Straddle stra
Unusual Option Talks? Nvidia Towards 540?!
avatarJacksNiffler
2023-12-26

How Option Could Help You Buy Game Giants' Dip?

$TENCENT(00700)$ and $NetEase(NTES)$ both experienced a significant decline on Friday, which would have been an opportunity for me in the past. However, given the current overall negative sentiment surrounding Chinese concept stocks, I'm not very inclined to take action without first assessing the severity of the situation.If it were something on the level of NetEase splitting from $Activision Blizzard(ATVI)$ or Tencent imposing restrictions on minors' gaming time, then it wouldn't be a big deal and I would consider buying. But this time:The document will fundamentally affect the company's revenue. Under constant bandwidth and channel costs, the high-profit game
How Option Could Help You Buy Game Giants' Dip?
avatarJaytan
2023-12-05
Selling option is the best !!
avatarLawrenceSG
2023-12-05
Nike, just do it.  Look at this negative example of me losing money.  If u r doing it the other way, u will be winning! 
avatarJacksNiffler
2023-11-23

What does it mean that NVDA ITM call closed?

I’m trading on $NVIDIA Corp(NVDA)$ earnings with options, cause NVDA is the leader in AI, and AI is leading the whole stock market. On the post-earning day, NVIDIA fell by 2.4%, while the $Invesco QQQ Trust-ETF(QQQ)$ stubbornly increased 0.41%.But on the other hand, we can also think that the market originally expected NVDA's financial report to rise by more than 10 points (as mentioned in previous articles), which would lead to a further rise in the overall market. However, if NVDA's performance exceeds expectations but does not rise, there is no reason to support a big rise in the market, which makes QQQ even colder at a higher level.
What does it mean that NVDA ITM call closed?
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
2023-11-21

Options Spy | Options orders suggest that Nvidia will gain more than 10%

With the Thanksgiving holiday approaching, US stocks edged higher in thin trading on Monday morning.The market awaits the minutes of the latest Federal Reserve meeting and Nvidia's earnings report, and Nvidia shares hit a record high. Despite OpenAI's infighting, Microsoft quickly recruited Altman, the father of ChatGPT, sending its stock to new highs. Retailers Best Buy and Kohl's were all lower ahead of the results.U.S. stocks jumped in late trading after a $16 billion auction of 20-year Treasury notes saw strong demand, boosting sentiment further and sending the 10-year note's interest rate plunging to 4.4 percent.With so much focus on what the Fed will do next with interest rates, the minutes of the Oct. 31-Nov. 11 meeting are remarkable. Markets are almost fully pricing in the possibi
Options Spy | Options orders suggest that Nvidia will gain more than 10%
avatarJacksNiffler
2023-11-21

Unusual Option Talks? History Repeat?

The August earnings of $NVIDIA Corp(NVDA)$ left a deep impression on options investors, with high expectations in the market. Not only did the stock rally before the report, but there was also significant volatility during the after-hours trading session, reaching an all-time high price (over $530) until it was recently broken by the opening price of $502. The subsequent decline in the following trading days resulted in no profits for both call and put buyers.The only viable and profitable strategy is to utilize volatility, such as going long on implied volatility (IV) before the financial report and closing positions before its release, or shorting IV a day before the report.The Q3 financial report on November 21st is also a focal point for the e
Unusual Option Talks? History Repeat?
avatarPPWAPAM_KenZhu
2023-11-19
This will be new lesson to me as I only learned sell call and sell put. Heard that buy put and buy call are also profitable. Interested to learn more😊
avatarOptionsBB
2023-11-10

Options Spy | Powell turned eagle, options order shows the institution wait-and-see

The sharp rise in U.S. bond interest rates rattled investors, Fed Chairman Powell's hawkish rhetoric spooked U.S. stocks, Tesla fell 5 percent, and the S&P ended an eight-day winning streak."The FOMC is committed to achieving a stance of monetary policy that is restrictive enough to bring inflation down to 2 per cent over time, and we do not believe we have reached such a stance," Mr Powell said on Thursday.Still, Powell said, "The Fed will continue to tread carefully to address the risk of being misled by several months of good data, and the risk of tightening too much." If appropriate, the Fed will not hesitate to raise rates."On the same day, Federal Reserve Governor Bowman also released a "hawk" message, saying that she expects the FOMC will need to continue to raise interest rates
Options Spy | Powell turned eagle, options order shows the institution wait-and-see
avatarfenixfire
2023-11-10
$Coinbase Global, Inc.(COIN)$  I have been trading in $Coinbase Global, Inc.(COIN)$  for a while, generally on the bearish side, as the SEC overhang casts a looming cloud of uncertainty over the company. I traded in it when it was stuck within the $70-80 range and made a decent amount trading that choppy range, creating strangles through sold puts and calls at the extremes of the range. I also traded  via  short positions from the top of the range, given my bias towards the downside for COIN. I was lucky that I ceased trading bearishly on COINand pivoted to other stocks, as I saw BTC increasing past the 30K range. Looking at COIN now, nearing the mid
avatarOptionsBB
2023-11-07

Options Spy | TLT EFT rebound faces major test from long bond auctions

Investors continue to be optimistic about the end of the Fed's interest rate hikes, but the resumption of the rise in U.S. Treasury rates has made it difficult for stocks to gain much momentum.Several Fed officials will give their views on the economy this week, including Chairman Jerome Powell, New York Fed President John Williams and Atlanta Fed President Raphael Bostic.Fed Governor Lisa Cook did not comment on monetary policy on Monday, but noted that the recent rise in long-dated U.S. interest rates did not appear to be driven by investor expectations of further rate hikes.Earnings season is almost over, with 80 percent of S&P 500 companies having reported their latest results, but there are still some important companies due to report this week, including Disney, Wynn Resorts and
Options Spy | TLT EFT rebound faces major test from long bond auctions