Option Strategies: SE, GTLB, TGT, MELI, ZS& DE
Hello everyone! Today i want to share some option strategies with you.
1.
Glad you asked Brian! Just closed the $John Deere(DE)$ put credit spread trade for profit.
Gonna free up some buying power for other trades today.
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2.
Looking at an optionselling Iron Condor (or possibly straight-up Strangle) on $Zscaler Inc.(ZS)$ for a pre-earnings trade today.
- Expected move: 11% (IV is high on this one)
- Sell-to-open short strikes of 182.5p & 325c
- 5-wide spread on the hedge (if we do an IC)
- Put strike is just below 200EMA of 188
- What worries us about the put strike is if ZS has a similar post-earnings reaction like PANW
- Call strike is over 30% above where the underlying is currently trading (as of the time of this post) ... seems very unlikely that ZS will pop +30% on earnings ... and if it does, many tech names are getting sold off the following day on the pump for profit-taking
- Probability of Profit (PoP) for the IC trade pegged at 88%, but anything is possible with earnings
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3.
Here we go ... optionselling earnings trades for today:
- $Zscaler Inc.(ZS)$ Strangle
- Mar 1 exp 182.5p & 320c
- $Autodesk(ADSK)$ Cash-Secured Put
- Mar 1 exp 220p (this one for assignment)
4.
Will be rolling this $MercadoLibre(MELI)$ Mar 1 1615p to next week’s expiration for a net credit, strike tbd. We like MELI as an assignment, but want to see if we can get a better entry price.
5.
Got another big week of earnings coming up next week. Ladies and gentlemen ... get to game planning and make that money !!! We will be taking an optionselling trade on $Sea Ltd(SE)$ tomorrow to play it for its earnings release before market open on Monday.
And then looking at $GitLab, Inc.(GTLB)$ later that day and $Target(TGT)$ and $CrowdStrike Holdings, Inc.(CRWD)$ the following day.
More to come the rest of the week. Stay tuned ...
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