Option Strategies: BABA, PANW, TGT& SAVE
Hello everyone! Today I want to share some option strategies with you!
1.
Closed it out. They moved up the ask by 0.01, so we gave in. Not happy though ... we don't like giving up money.
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Trying to close out our $Target(TGT)$ Dec 15 90/80 put credit spread for close to max profit. Set the order at the ask and it still isn't getting filled. Would prefer to close this trade so that we can free up the buying power.
2.
Trade idea on $Palo Alto Networks(PANW)$
Earnings Date: Nov 15th after market close
Expected Move: ~7%
Entry: Is it just us, or do you also think that PANW looks primed for a drop after earnings? We want to establish a long position on this stock, so we'd welcome a drop in price. We are going to scale into this by playing pre-earnings and post-earnings. Pre-earnings we will sell puts on the Dec 15 expiration at the 175, 185 or 190 strike. Post-earnings if there is a big drop, we will then sell additional puts on the Nov 17 expiration and 200 (or higher) strike.
Exit: We want to get assigned a position, so our exit strategy is to take assignment. If we don't get assigned at the strike price we want, then we're more than happy to capture the premium. Either way, its a winning trade for us!
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3.
Earnings trade idea on $Alibaba(BABA)$
Earnings Release: Nov 16th before market open
Expected Move: ~4%
Entry: We are targeting the Dec 15 exp 75 strike to sell puts on. Wouldn't mind picking up shares at that price to help lower the cost basis of our current long position on BABA. BABA has been trading in the 77-103 range with multiple touches around 80, and is currently trading near the bottom of the range. There is volume support at the 83-84 level. $JD released earnings today and traders pumped the price up, hence BABA followed in sympathy. We wouldn't be surprised to see traders pump the price up even more as long as earnings and guidance isn't too bad (even if the numbers aren't great). That said, could today's sympathy pump have already accounted for some of the possible uplift in post-earnings price move if traders are thinking BABA will report positively? IDK.
Exit: We will take assignment at 75 or roll position depending on how much BABA falls below 75 and how forward guidance and future earnings outlook is for the company. Otherwise, will close out this trade for profit.
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4.
Haven't been watching $Spirit Airlines(SAVE)$ as closely and missed both an optionselling and optionsTrading opportunity on it a few days ago. That said, the stock is for sure in play now (versus our previous post) for us degen gamblers!
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