Option Strategies: AVGO, MDB& .SPX
Hello everyone! Today i want to share some option strategies with u!
1.
Pre-earnings trade idea on $MongoDB Inc.(MDB)$
Earnings Release: March 7 after market close
Expected Move: ~13% / IV 300%+ (this is setting up to potentially be a big mover post-earnings)
Trade: Sell-to-open a Strangle targeting 3-4X outside the expected move (so, strikes that are 30-40% away from the current trading price). March 8 expiration, 280-290 put & 580 call strikes. The 280-290 level is at the gap from a previous earnings release and the 580 level is near the ATH.
Goal: Trade expires worthless tomorrow or can be closed out for less than 0.05/contract as MDB price stays within the strikes. If a strike is breached (or looks very likely to get breached), then close out that leg of the trade for a loss.
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2.
Bought-to-open a lotto play for tomorrow on $S&P 500(.SPX)$ .
Got some big names releasing earnings after the bell today ( $Costco(COST)$ , $Broadcom(AVGO)$ , $MongoDB Inc.(MDB)$ ),
so the thought (aka "bet") is that it moves the market big one way or the other.
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3.
Sold a put on $Broadcom(AVGO)$ to play it for earnings.
STO April 19 exp 1120 strike. This is in our 'buy-and-hold' account we rarely trade in, and would consider holding shares if assigned
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