To The Moon

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

1.

Earnings trade idea on: $Okta Inc.(OKTA)$

Earnings date: Wednesday May 29 after market close

Expected move: ~11%

Pre-Earnings Trade Idea:

- Sell-to-open May 31 expiration Iron Condor (or Strangle). Short strikes on both will be the 75 put and 120 call strikes. Targeting a 5-wide spread.

Post-Earnings Trade Reaction:

- Buy-to-close the entire position if OKTA stays above 75 and below 120, and IV crush positions both sides of the trade in profit.

- If the underlying breaches the put strike, then close for a loss or roll to a lower strike and further out date to get either a worthless expiration or get a better entry price for assignment (depending on earnings results and forward guidance).

- Close for a loss if post-earnings price breaches the call strike and does not look like it will retract below 120 by expiration.

Facts:

- 200EMA at the 89 level

- 2X the expected move places downside to around 75 and upside to 118

- OKTA hasn't tapped the 118 level since May 2022, but it came close a few days after the previous earnings move

- Volume support point-of-control at the 70 level (based on this specific daily chart), but if you condense the daily timeframe to only CY2024, then the volume point-of-control is at the 84 level

- 84% calculated PoP (probability of profit) for the Iron Condor 75/70pcs & 120/125 ccs

Note: Strikes may have to be adjusted based on the underlying's price before market close on Wednesday.

2.

Closed DKS trades. Closed $Chewy, Inc.(CHWY)$ 15p and left the 22c open to see what happens.

Might buy longs on CHWY to hedge against the short call.

3.

Trying something very different than how we typically do pre-earnings trades. Have been wanting to branch out to different #Optionselling strategies. Sold-to-open 1 contract on $Okta Inc.(OKTA)$ right at the 200EMA and at the gap.

OKTA doesn't have to fall much to completely fill that gap from the last earnings release. Let's see how this goes.

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