Option Strategies: ORCL& DLTR
Hello everyone! Today i want to share some option strategies with you!
1.
Trade idea on $Oracle(ORCL)$
Earnings Date: March 11 after market close
Expected Move: ~8% (could change on Monday)
Trade: Sell-to-open a Strangle, March 15 expiration, 90 put & 140 call strikes
Points of consideration:
- Double-top rejection at the 128 price level
- Volume resistance and point-of-control at the 116 level
- Previous earnings bottomed at the 99 level
- Weakness in the database/data-warehouse tech names as evidenced by MDB and SNOW earnings
- The 90p & 140c strikes are 2X the expected move, but keep in mind that actual earnings moves on tech names have been coming out higher than the expected move lately.
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2.
Trade idea on $Dollar Tree(DLTR)$
Earnings Date: March 13 before market open Expected
Move: 7.4% (could change leading up to Wednesday)
Trade: Sell-to-open a Strangle, March 15 expiration, targeting put strikes at 120 or below and call strikes at 177.5 or above
Points of consideration:
- DLTR hasn't seen the 175 level since July 2022
- Strong volume support and point-of-control at the 116 level
- Target strikes are 2X+ the expected move
- Probability-of-Profit (PoP) on an Iron Condor 5-wide spread trade using the same short strikes is 84%.
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