Option Strategies: AMD, TTWO& UAA
Hello everyone! Today i want to share some option strategies with u!
1.
$Under Armour Class A(UAA)$ releases earnings before market open on Thursday. Zooming out to the weekly chart, we can clearly see that UAA has reached a very low point in its price history. If you look closely, you'll see that UAA has been consolidating on the weekly chart around the 6.5 level. Expected move isn't that big for earnings ... ~7.5%.
We don't typically sell strikes so close to ATM on a pre-earnings trade, but the R/R seems worth the gamble on UAA based on the weekly chart. We're contemplating an optionselling order for the May 31 expiration 6.5 strike put.
The risk here is assignment of UAA shares at 6.5 and bagholding a loss if the stock price were to break and stay below the 6.5 strike post-earnings. Reward would be the premium captured.
If you go to the daily chart, you can see that UAA has bounced off that 6.5 level a few times already. There is a gap between the 7.5-8 range. The stock hasn't gotten pumped heading into earnings, so maybe the tutes are holding the price down for a post-earnings pump and gap fill. Do we dare sell the put option to find out ?!?! 🤔🤷🏽♂️
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2.
[Update]: Okay, so the $Take-Two(TTWO)$ 125 put strike sits right at a gap with strong volume support. That's why we took that strike. Ended up not #Optionselling a call, but will look to do so tomorrow.
Expected move is ~7%, which positions the 125 strike outside the expected move downside range.
The market had a big green day today and we're betting that continues tomorrow, so trying to capture the premium now assuming the market (and this ticker) pumps up more tomorrow. If the market dumps, then we will have to re-visit the trade.
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3.
So ... we have a long position on $Advanced Micro Devices(AMD)$ and sold covered calls on it last week (June 7 exp 165 strike). Getting taken out at 165 would be a profitable trade for us.
That said, should we take a "loss" on the position and roll it to a higher strike to try and capture more possible upside (we're thinking June 21 exp 170 strike)?
Semis with a strong move today, and NVDA has earnings coming up and if NVDA pumps big then it will most likely take AMD with it.
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