To The Moon

Hello everyone! Today I want to share some option stratgies with u!

1.

Earnings trade idea on: $GitLab, Inc.(GTLB)$

Earnings date: Monday June 3 after market close

Expected move: ~16%

Points to Consider:

- GTLB is trading below the 200EMA

- Unfilled gap at the 37 level from several earnings ago

- Price has reached the 0.382 fib retracement level ... hitting the next fib retracement level of 0.236 would be at the 38-39 level (very close to the 37 gap)

- The 0.786 fib retracement level is at 67

- Expected move to downside is at 41 and to upside is at 56

- Options chain only goes down to the 35 strike (hopefully more lower strikes get opened up on Monday)

Trade Idea: Sell a strangle at the 67 call strike and a put strike in the 25-30 range.

The 35 strike sits just below the 37 gap, but we would prefer to be positioned 2X+ the expected move. If more lower strikes are not opened up, then we will consider selling a 36/35 or 37/36 put credit spread instead.

Could also hedge the call side of the trade with a spread.

2.

Sure. Happy to take a look at $Hewlett Packard Enterprise(HPE)$ .

Earnings date: Tuesday June 4 after market close

Expected move: ~11%

Points to Consider:

- HPE trading above the 200EMA

- Volume point-of-control at the 17 level

- Expected move to downside is just below 16 and to upside is close to 20

- Previous earnings moves have been below 10% +/- (but past results are not a predictor of future actions)

- Price bottomed around the 15 level before the last earnings release

- Options chain looks interesting ... lots of OI at the 20 call strike and the concentration of OI on the puts is around ATM ... seems like folks might be selling the 20c and buying the ATM puts, but don't know for sure since we haven't seen if the flows on these strikes are at the bid or ask.

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