Option Stratgies: LEN
Hello everyone! Today i want to share some option strategies with you!
1.
Pre-earnings trade idea on: $Lennar(LEN)$
Earnings date: June 17 after market close
Expected move: ~6% (with IV below 100%)
Expected move range: 146-164
Facts to Consider:
- 2X the expected move places downside to 136 and upside to 174 from Friday's closing price
- LEN is trading right at volume support point-of-control
- Gap at the 123 level, with a consolidation support level just above it around 126
- 200EMA is at the 145 level
- Options chain shows the most OI at the 140 put strike and the 165 call strike
Trade Idea:
- Since a big move is not expected, we might sell premium on this rather than buy premium. We would likely target a put strike at 140 or below and a call strike at 175 or above. June 21 expiration.
Note:
- Expected move percentage, downside/upside range bounds, and short strikes subject to change based on the underlying's price action into market close on Monday
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