Option Strategies: ZM, LOW& ADSK
Hello everyone! Today i want to share some option strategies with you!
1.
Done with work meetings. Gonna place the ZM and LOW optionselling trades (mentioned over the weekend) before I leave for lunch with my co-workers.
- $Zoom(ZM)$ Iron Condor Dec 15 exp 55/50 put credit spread and 75/80 (or 80/85) call credit spread
- $Lowe's(LOW)$ Dec 15 exp 185/180 put credit spread
2.
Earnings trade idea on $Autodesk(ADSK)$
Earnings Release: Nov 21st after market close
Expected Move: ~6% for Nov 24 weekly close
Entry: Sell a put credit spread - Dec 15 expiration - 5 wide spread - sell the 190 and buy the 185 strikes We picked the 190/185 strikes since that positions us 2X the expected move. Note that the strikes we sell may change based on how ADSK price action moves leading up to Tuesday market close. It has profit profitability on this trade pegged at 86%, thus implying a 14% probability of the trade going against us. We'll take those odds.
Exit: Close out the trade if ADSK stays above 190 post-earnings and IV gets crushed, thus positioning our trade in profit. If ADSK dumps and our short strike gets breached, then we will either ride the position out if price action looks like it will come back in our favor and theta decay will do its job and kill the premium, or close out for a loss if price action looks like it will continue to move against our trade and won't recover.
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