To The Moon

Hello everyone! Today I want to share some option strategies with you!

1.

We're taking an optionselling pre-earnings trade on $Nike(NKE)$ .

Sold-to-open a Strangle, Mar 22 exp, 86p & 120c strikes. No detailed analysis on this one. Basically, we're simply selling at the gaps and rolling it.

The 86p short strike concerns us as it is a bit more aggressive a strike than we would prefer to play even though it is outside the expected move range.

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2.

Geez $FedEx(FDX)$ ... wow!!! Did not see that strong of a move coming for earnings. Here's our #OptionsTrading optionselling plan moving forward. We will most likely lose on our Mar 22 290/292.5 call credit spread. The gains from our long position will offset the loss, but the downside is that we've capped our potential gains with covered calls. No way to know for sure which way FDX was going to move with earnings, and no way to know it was gonna pump 10+%.

So ... what do we do now? We're gonna take the loss on the CCS unless somehow there is big profit-taking tomorrow that sends the stock price below 290 to close the day. We will either let our 262.5cc get assigned, or we might roll it to a higher strike to capture more of the upside move. We doubt FDX falls back down to 262.5 in the following weeks.

This means we would take a realized loss on the CCS and CC for this week, but would eventually net out at overall profit once we let the CC get assigned.

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