Option Strategies: PATH, DG, DLTR, DKS& ADBE
Hello everyone! Today I want to share some option strategies with you!
1.
Got $Dollar General(DG)$ on the radar for an optionselling earnings play today.
The daily chart in interesting.
- Unfilled gap at the 200 level / Gap at the 151 level has now been filled with this current uptrend
- Strong volume support and point-of-control at 134 - 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 85% for the short strikes
Trade Idea: Sell-to-open a Strangle, March 15 expiration, 122p & 200c strikes.
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2.
$UiPath(PATH)$ has earnings after the bell today. Whoa ... look at that IV !!!
- Currently have longer-DTE $17p in play, and sold a few more at $17.5 strike April 19 expiration (at strong volume support and point-of-control). Would like to get assigned at that price. Might even sell a few more at the 19p strike (just below the gap at 20).
- Not sure about selling a call, but if we did we would target the March 15 exp $35c strike. PATH hasn't seen 35 since Feb 2022.
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3.
Earnings trades for today:
- Closed $Dollar Tree(DLTR)$ 180c for profit and 120p for a loss
- Sold-to-open $Dick's Sporting Goods(DKS)$ Mar 15 exp 133p & 235c strangle
- Sold-to-open $Dollar General(DG)$ Mar 15 exp 121p & 195c strangle
4.
Iron Condors on tap for earnings trades on $Ulta Salon Cosmetics & Fragrance(ULTA)$ & $Adobe(ADBE)$ tomorrow. March 15 expiration.
- ULTA 480/470 put credit spread & call credit spread strikes tbd
- ADBE 485/475 put credit spread & 700/710 call credit spread
* Will adjust strikes as needed based on price action tomorrow
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