I opened $TSLA 20240517 185.0 CALL$ ,Sold covered call on my stock as the 20 simple moving average seems to be quite a strong resistance and the market is also pulling back. I sold at $185 strike as 183 is a strong resistance as well
The best and safest way to profit from iv crush during earnings is to sell options, Either covered calls or cash secured puts, because of the uncertainty and big swings in price the premium received is much higher than when the stock is not reporting earnings.. Let us use $Tesla Motors(TSLA)$ as an example as they are reporting earnings next week. If you own 100 Shares of tsla and you are bearish you can sell a call option at the strike price you are comfortable selling the 100 shares. If tsla reports good earnings and the price rallies and expires above the strike of the call, you get to sell the shares at the price you want and get to keep the premium as well. If tsla reports bad earnings and the stock crashes you get to keep the full
I closed $SOFI CALENDAR 240419/240503 PUT 8.0/PUT 8.0$ ,Rolled my cash secured put out till after earnings to earn more premium due to the high iv. I’m confident that Sofi will beat earnings but lately many stocks have beat earnings but the price still drop. The roll function on the tiger brokers platform is really awesome. Before I had to buy back the put and sell another put.
I opened $Tesla Motors(TSLA)$ ,Bought more tsla shares at the gap fill of $146.20. Tsla is oversold with triple bullish divergence on the rsi. Will tsla bounce from here? Who knows but as a long term Tesla investor I’ve been through this roller coaster ride for a long time and such dips are usually good buying opportunities for the long run
I opened $Estee Lauder(EL)$ ,Bought some EL shares to lower down my average cost. EL has bounced off 138 strongly twice but it broke this support. If price can continue to rise above 138 it will be a bear trap and el could break new highs
I opened $PLTR 20240503 23.0 CALL$ ,Sold covered calls on my shares as price of pltr broke down from a bear flag pattern it lost support of $21.75 the calls expire before earnings
I closed $PLTR 20240426 27.0 CALL$ ,Closed covered calls on my pltr stocks for a nice profit as price action seems quite bullish so I can sell covered calls again before earnings
I closed $TSLA 20240412 205.0 CALL$ ,Closed my covered call for a 97% profit as there isn’t much value left in that contract. If Tsla price increases I will sell another call to earn more premium. Even as price falls I can still earn income to lower the average price of my tsla stock
I opened $Estee Lauder(EL)$ ,Bought some EL stock to lower my average cost. I believe el has bottomed at $102 will continue to DCA if price drops further. Next support level is $138
I opened $PLTR 20240426 27.0 CALL$ ,Sold new covered call on my stock as I believe the fed will cause the market to pull back after such a strong rally for the past few months and inflation has been ticking up