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07-30 15:15

MU and SKHY Rebound Sharply — Worried About a Pullback?How to Manage Risk with Options?

$Micron Technology(MU)$ $SK hynix(SKHY)$ recently rebounded alongside the broader memory and semiconductor sectors after pulling back sharply from their recent highs. Both stocks surged around 18% on July 30, quickly recovering part of their earlier losses. The rally was mainly supported by improving market expectations for the memory supply outlook, as well as continued investment in AI infrastructure by major technology companies. From a fundamentals perspective, Micron’s latest results showed record revenue and earnings for the third quarter of fiscal year 2026. Management also provided a stronger outlook for the fourth quarter. However, a sharp one-day rebound does not ne
MU and SKHY Rebound Sharply — Worried About a Pullback?How to Manage Risk with Options?

🎯 $PepsiCo, Inc.(PEP) Options Strategy: Bull Put Spread (Credit Spread)

$Pepsi(PEP)$ - Underlying: PEP - View: Cautiously optimistic, expecting consolidation with a potential short-term bounce from oversold levels. The primary goal is to generate income while defining risk. - Strategy Type: Credit Spread / Bullish - Option Contract Portfolio: - Sell 1 PEP Put (Exp: 2026-07-24, Strike: 137) - Buy 1 PEP Put (Exp: 2026-07-24, Strike: 135) - Max Gain & Loss: Max Gain = Net Credit Received ($0.94 - $0.53 = $0.41). Max Loss = Width of Spread - Net Credit = ($2 - $0.41) = $1.59 per share. - Initial Cost/Credit: Initial Credit of ~$0.41 per share.
🎯 $PepsiCo, Inc.(PEP) Options Strategy: Bull Put Spread (Credit Spread)

🎯 $The Coca-Cola Company (KO) Options Strategy: Bull Call Spread

$Coca-Cola(KO)$ - Underlying: KO - View: Bullish (Breakout above $84.92, targeting $87-$88. Strong technicals and analyst upgrades). - Strategy Type: Debit Spread / Directional - Option Contract Portfolio: - Buy 1 KO 19 Sep 2026 $85.00 Call - Sell 1 KO 19 Sep 2026 $87.50 Call - Max Gain & Loss: Max Gain = $250 per spread (Difference in strikes - net debit). Max Loss = Net Debit Paid. - Initial Cost/Credit: Debit of ~$0.42 (Estimated using provided mid-prices: Buy $85 Call @ $0.95, Sell $87.50 Call @ $0.53).
🎯 $The Coca-Cola Company (KO) Options Strategy: Bull Call Spread

🎯 $Mastercard (MA) Options Strategy: Bull Call Spread (Debit Spread)

$MasterCard(MA)$ - Underlying: MA - View: Bullish, expecting a continuation of the rally towards resistance, but with high IV suggesting potential for volatility contraction. - Strategy Type: Debit Spread / Directional Bullish - Option Contract Portfolio: - Buy 1 MA 17-Jul-2026 $550 Call @ $4.05 (Mid) - Sell 1 MA 17-Jul-2026 $560 Call @ $0.95 (Mid) - Max Gain & Loss: Max Gain: $600. Max Loss: $310. - Initial Cost/Credit: Net Debit of $3.10 per spread.
🎯 $Mastercard (MA) Options Strategy: Bull Call Spread (Debit Spread)

🎯 $Lowe's Companies, Inc.(LOW) Options Strategy: (Bull Call Spread)

$Lowe's(LOW)$ - Underlying: LOW - View: Cautiously bullish. The stock has rebounded strongly from support with high volume, and RSI indicates short-term momentum. However, MACD remains negative, suggesting the broader trend is not yet confirmed. Expect consolidation with a potential move towards the $225 resistance. - Strategy Type: Debit Spread / Directional Bullish - Option Contract Portfolio: - Buy 1 LOW Aug 14, 2026 $215 Call - Sell 1 LOW Aug 14, 2026 $225 Call - Max Gain & Loss: - Max Gain: $4.00 per spread (($225 - $215) - Net Debit) - Max Loss: $2.00 per spread (Net Debit) - Initial Cost/Credit: Net Debit of ~$2.00 (Estimated: Buy $215 Call @ $4.25, Sell $225 Call @ $2.25)
🎯 $Lowe's Companies, Inc.(LOW) Options Strategy: (Bull Call Spread)

🎯 $Starbucks Corp.(SBUX) Options Strategy: Bull Call Spread (Debit Spread)

$Starbucks(SBUX)$ - Underlying: SBUX - View: Bullish. The stock is near its 52-week high with strong momentum (RSI ~69, positive MACD) and positive fundamental catalysts (AI cost savings, analyst upgrades). Expectation is a consolidation or a breakout above $108.88 resistance. - Strategy Type: Bullish Vertical Debit Spread - Option Contract Portfolio: - Buy 1 SBUX 2026-08-21 $108.00 Call - Sell 1 SBUX 2026-08-21 $112.00 Call - Max Gain & Loss: Max Gain = ($112 - $108) - Net Debit. Max Loss = Net Debit Paid. - Initial Cost/Credit: Debit (~$1.60 estimated, based on mid-prices near $108: $1.03 bid/$1.25 ask for the long call and $0.45 bid/$0.79 ask for the short call).
🎯 $Starbucks Corp.(SBUX) Options Strategy: Bull Call Spread (Debit Spread)

🎯 $Costco Wholesale (COST) Options Strategy: Bull Call Spread (Debit Spread)

$Costco(COST)$ - Underlying: COST - View: Cautiously Optimistic (Bullish Rebound / Consolidation Expected) - Strategy Type: Bullish Debit Spread - Option Contract Portfolio: - Buy 1 COST 2026-07-24 Call @ $950.00 Strike (Mid Price: ~$9.50) - Sell 1 COST 2026-07-24 Call @ $970.00 Strike (Mid Price: ~$3.63) - Max Gain & Loss: Max Gain = $1,937.00; Max Loss = $587.00 - Initial Cost/Credit: Debit of ~$5.87 per spread ($587.00 per contract)
🎯 $Costco Wholesale (COST) Options Strategy: Bull Call Spread (Debit Spread)

🎯 $McDonald's Corp (MCD) Options Strategy: Bull Call Spread

$McDonald's(MCD)$ - Underlying: MCD - View: Cautiously optimistic, targeting a move towards the $285-$299 resistance zone after a strong bounce from support. - Strategy Type: Debit Spread / Directional Bullish - Option Contract Portfolio: - Buy 1 MCD 2026-07-24 $275.00 Call @ $3.175 (Mid) - Sell 1 MCD 2026-07-24 $285.00 Call @ $0.76 (Mid) - Max Gain & Loss: Max Gain = $6.85 ($10.00 spread width - $3.15 debit). Max Loss = $3.15 (Net Debit Paid). - Initial Cost/Credit: Debit of ~$3.15 per spread.
🎯 $McDonald's Corp (MCD) Options Strategy: Bull Call Spread

🎯$Merck & Co., Inc.(MRK) Options Strategy: Bull Call Spread (Debit Spread)

$Merck(MRK)$ - Underlying: MRK - View: Cautiously optimistic, targeting a break above the key $130.29 resistance. - Strategy Type: Debit Spread / Directional Bullish - Option Contract Portfolio: - Buy 1 MRK 21 Aug 2026 $128.00 Call - Sell 1 MRK 21 Aug 2026 $135.00 Call - Max Gain & Loss: Max Gain = $700 per spread; Max Loss = $130 per spread. - Initial Cost/Credit: Debit of ~$1.30 (estimated from chain: Buy $128C @ $0.79, Sell $135C @ $0.02).
🎯$Merck & Co., Inc.(MRK) Options Strategy: Bull Call Spread (Debit Spread)

🎯 $Salesforce (CRM) Options Strategy:Bull Call Spread (Debit Spread)

$Salesforce.com(CRM)$ - Underlying: CRM - View: Bullish. The stock has broken resistance on strong volume with a bullish MACD crossover and positive analyst sentiment. The primary target is the $175+ zone. - Strategy Type: Debit Spread / Directional Bullish - Option Contract Portfolio: - Buy 1 CRM Sep 18, 2026 $172.5 Call @ $2.01 (Ask) - Sell 1 CRM Sep 18, 2026 $180.0 Call @ $0.14 (Bid) - Max Gain & Loss: Max Gain = $5.13 per spread. Max Loss = $1.87 per spread. - Initial Cost/Credit: Net Debit of ~$1.87 per spread.
🎯 $Salesforce (CRM) Options Strategy:Bull Call Spread (Debit Spread)

🎯 $Intuitive Surgical, Inc.(ISRG) Options Strategy: Bull Call Spread

$Intuitive Surgical(ISRG)$ - Underlying: ISRG - View: Cautiously bullish, expecting a consolidation/bounce from oversold levels post-earnings, with potential to test higher resistance. - Strategy Type: Debit Spread / Directional Bullish - Option Contract Portfolio: - Buy 1 ISRG 24JUL26 400 Call @ $18.50 (Mid Price: $20.05) - Sell 1 ISRG 24JUL26 415 Call @ $11.02 (Mid Price: $11.60) - Max Gain & Loss: Max Gain = Spread Width - Net Debit = $15 - $6.48 = $8.52. Max Loss = Net Debit = $6.48. - Initial Cost/Credit: Net Debit = ~$6.48.
🎯 $Intuitive Surgical, Inc.(ISRG) Options Strategy: Bull Call Spread

🎯 $Gilead Sciences, Inc.(GILD) Options Strategy: Bull Call Spread (Debit Spread)

$Gilead Sciences(GILD)$ - Underlying: GILD - View: Bullish, targeting a move towards the $140-$141 resistance zone. - Strategy Type: Debit Spread / Directional Bullish - Option Contract Portfolio: - Buy 1 GILD 17 Jul 2026 $137 Call @ $1.95 (Mid-Price) - Sell 1 GILD 17 Jul 2026 $141 Call @ $0.87 (Mid-Price) - Max Gain & Loss: Max Gain = $308, Max Loss = $192 - Initial Cost/Credit: Net Debit of $1.08 per spread ($192 total for 1 spread).
🎯 $Gilead Sciences, Inc.(GILD) Options Strategy: Bull Call Spread (Debit Spread)

🎯 $Amgen Inc. (AMGN) Options Strategy: Bull Call Spread (Debit Spread)

$Amgen(AMGN)$ - Underlying: AMGN - View: Bullish momentum continuation, with potential to test resistance near $380-390 after a strong breakout. - Strategy Type: Bullish Debit Spread / Directional - Option Contract Portfolio: - Buy 1 AMGN Call (Exp: 2026-07-24, Strike: $372.5) - Sell 1 AMGN Call (Exp: 2026-07-24, Strike: $385.0) - Max Gain & Loss: Max Gain = (Higher Strike - Lower Strike) - Net Premium Paid. Max Loss = Net Premium Paid. - Initial Cost/Credit: Debit of ~$2.10 (Estimated: Mid-price $5.40 for long call - $1.56 for short call).
🎯 $Amgen Inc. (AMGN) Options Strategy: Bull Call Spread (Debit Spread)

🎯 $International Business Machines(IBM) Options Strategy: Bull Put Spread (Credit Spread)

$IBM(IBM)$ - Underlying: IBM - View: Cautiously optimistic for a short-term oversold bounce, but with significant downside risk. The strategy aims to capitalize on the high IV to collect premium while defining risk. - Strategy Type: Credit Spread / Defined Risk - Option Contract Portfolio: - Sell 1 IBM Put, Strike $210, Expiry 2026-07-24 - Buy 1 IBM Put, Strike $205, Expiry 2026-07-24 - Max Gain & Loss: - Max Gain: Net Credit Received = ~$1.34 - Max Loss: (Strike Difference - Net Credit) = ($5 - $1.34) = ~$3.66 - Initial Cost/Credit: Net Credit of ~$1.34 per share.
🎯 $International Business Machines(IBM) Options Strategy: Bull Put Spread (Credit Spread)

🎯 📈 $United Parcel Service (UPS) Options Strategy: Bull Call Spread

$United Parcel Service Inc(UPS)$ - Underlying: UPS - View: Cautiously Optimistic (Short-term overbought, expecting consolidation with a bullish bias towards $120-$122 resistance). - Strategy Type: Debit Spread / Directional Bullish - Option Contract Portfolio: - Buy 1x UPS Call Option, Strike $118, Expiration 2026-07-24 - Sell 1x UPS Call Option, Strike $120, Expiration 2026-07-24 - Max Gain & Loss: Max Gain = $200 per spread (difference in strikes - net debit). Max Loss = Net Debit Paid. - Initial Cost/Credit: Debit of ~$1.56 (using mid-prices: $1.56 buy $118C - $0.84 sell $120C).
🎯 📈 $United Parcel Service (UPS) Options Strategy: Bull Call Spread

🎯 $Genpact (G) Options Strategy: Bull Call Spread (Debit Spread)

$Genpact(G)$ - Underlying: G - View: Moderately Bullish. Expecting a continued move higher towards resistance ($33-$34), but cognizant of near-term overbought conditions and high IV. - Strategy Type: Vertical Debit Spread / Defined Risk Bullish - Option Contract Portfolio: - Buy 1 G Aug 21, 2026 $30.00 Call @ ~$2.85 (Mid) - Sell 1 G Aug 21, 2026 $35.00 Call @ ~$1.125 (Mid) - Max Gain & Loss: - Max Gain: $297.50 [($35 - $30) * 100 - $202.50 Debit] - Max Loss: $202.50 (Net Debit Paid) - Initial Cost/Credit: Debit of ~$202.50 per spread.
🎯 $Genpact (G) Options Strategy: Bull Call Spread (Debit Spread)

🎯 $Nike Inc. (NKE) Options Strategy: Bull Call Spread

$Nike(NKE)$ - Underlying: NKE - View: Bullish Reversal, targeting $45.50-$47 zone. - Strategy Type: Debit Spread (Directional, Limited Risk/Reward) - Option Contract Portfolio: - Buy 1 NKE 2026-08-07 $45.0 Call @ $0.70 (Mid) - Sell 1 NKE 2026-08-07 $47.0 Call @ $0.19 (Mid) - Max Gain & Loss: Max Gain = $149, Max Loss = $51 (per spread) - Initial Cost/Credit: Net Debit of $0.51
🎯 $Nike Inc. (NKE) Options Strategy: Bull Call Spread

🎯 Adobe (ADBE) Options Strategy: Bull Call Spread (Debit Spread)

$Adobe(ADBE)$ - Underlying: ADBE - View: Cautiously optimistic, short-term overbought but strong momentum and undervalued signal. - Strategy Type: Debit Spread / Directional Bullish - Option Contract Portfolio: - Buy 1 ADBE 24JUL26 240 Call @ ~$5.05 (Mid) - Sell 1 ADBE 24JUL26 250 Call @ ~$2.17 (Mid) - Max Gain & Loss: Max Gain = $712 per spread; Max Loss = $288 per spread. - Initial Cost/Credit: Net Debit of ~$2.88 per spread.
🎯 Adobe (ADBE) Options Strategy: Bull Call Spread (Debit Spread)

🎯 $Intuit Inc. (INTU) Options Strategy: Bull Call Spread

$Intuit(INTU)$ - Underlying: INTU - View: Cautiously optimistic, expecting a continuation of the short-term rebound within a consolidation range. - Strategy Type: Debit Spread (Directional, Bullish) - Option Contract Portfolio: - Buy 1 INTU 18 Sep 2026 $295 Call - Sell 1 INTU 18 Sep 2026 $310 Call - Max Gain & Loss: Max Gain = $1,500 (Width - Net Debit). Max Loss = Net Debit Paid. - Initial Cost/Credit: Debit ~$4.50 (Est. based on simulated 9/18/2026 chain mid-prices: $295 Call ~$7.50, $310 Call ~$3.00).
🎯 $Intuit Inc. (INTU) Options Strategy: Bull Call Spread

🎯 $Under Armour, Inc. (UAA) Options Strategy: Bull Call Spread

$Under Armour Class A(UAA)$ - Underlying: UAA - View: Bullish with expectation of a move towards $7.50, but acknowledging overbought RSI (77.28) suggests near-term consolidation risk. The high IV environment (69.51%) and IV Percentile (86.45%) make outright long calls expensive. - Strategy Type: Debit Spread / Defined Risk Bullish - Option Contract Portfolio: - Buy 1 UAA 19-SEP-2026 $7.00 Call @ ~$0.70 (Estimated) - Sell 1 UAA 19-SEP-2026 $8.00 Call @ ~$0.30 (Estimated) - Max Gain & Loss: - Max Gain: $60 per spread ($1.00 width - $0.40 debit) - Max Loss: $40 per spread (net debit paid) - Initial Cost/Credit: Net Debit of ~$0.40 per share.
🎯 $Under Armour, Inc. (UAA) Options Strategy: Bull Call Spread

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