Option Strategies: CRM, PATH, SNOW& PDD
Hello everyone! Today I want to share some option strategies with you!
1.
- Expected move is ~10%. Looking to sell puts at the 14 strike. Expiration date tbd, but will most likely have to go out to mid or late Dec to get decent premium. We weren't able to get assigned shares during the last earnings release. Will try again.
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2.
- Expected move is ~5%. Targeting the 195/190 put spread or 190 naked put to sell. Expiration date tbd, but probs targeting Dec 8 or 15 for better premium. Primarily playing this for premium capture, but willing to accept assignment at 190 if we sell naked.
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3.
Earnings trade idea on $Snowflake(SNOW)$
Earnings Release: Nov 29th after market close
Expected Move: ~8% for Dec 1 weekly close
Entry: We currently have 170p that we sold a while ago before this recent rally run in the market. We will close those out before earnings. We like the Dec 1 exp 140 strike (buy zone) for a cash-secured put and the Dec 1 210/215 call credit spread. It has profit probability on the call spread trade pegged at 97%. We like those odds, and might even lower the call spread to 205/210 (which has a 95% probability). There is only a 3% probability of the put strike hitting, but anything is possible with earnings and we feel comfortable buying shares at that price.
Exit: Close out the trade if SNOW stays within the put and call strikes sold. If the call strike gets breached, then roll the position (strike) higher and expiration date farther out or close the trade and take the loss. If the put strike gets breached, then for us we are either going to take assignment of shares or roll the position to a lower strike to get a better entry price.
Note that probabilities and strikes selected are subject to change depending on where SNOW is trading at on Wednesday.
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Lastly, here is our optionselling plan for this upcoming week of earnings plays.
- $Zscaler Inc.(ZS)$ & $CrowdStrike Holdings, Inc.(CRWD)$ Dec exp, strike in 145-155p range, ccs tbd
- $Pinduoduo Inc.(PDD)$ Dec 1 140/145 ccs & tbd on pcs
- $Workday(WDAY)$ Dec 8 or 15, 195p
- $Salesforce.com(CRM)$ Dec 8 or 15, 195p or 195/190 pcs
- $UiPath(PATH)$ Dec 22, 14p
- $Snowflake(SNOW)$ tbd
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