Option Strateigies: ONON, DKS& ORCL
Hello everyone! Today I want to share some option strategies with you!
1.
Doing our nightly research for optionselling earnings plays tomorrow. Got $Dick's Sporting Goods(DKS)$ on the radar.
Trade Idea:
Sell-to-open a Strangle, March 15 expiration, put strike in the 138-140 range, call strike at 225 or 230.
Points of consideration:
- 200EMA at 138 with some volume support / stronger volume support and point-of-control at 114
- Hitting 225 would be a new ATH for DKS, but we don't see that happening considering pumps are getting faded in this current market
- Strikes are 2-3X the expected move, giving us some cushion to absorb any gap risk and higher-than-expected moves
- Probability of Profit (PoP) at 86% for the short strikes
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2.
Been busy at work today. Closed out the $On Holding AG(ONON)$ and $Oracle(ORCL)$ strangle trades for profit. Freed up the buying power to use on an optionselling earnings trade on $Dollar Tree(DLTR)$ (per our previous post).
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