Option Strategies: VIX, NVTS, SMCI& SOFI
Hello everyone! Today i want to share some option strategies with you!
1.
$SoFi Technologies Inc.(SOFI)$ Look at that ... institutional ownership in SOFI is increasing. Glad to see it! But you know what that means ... be prepared for tutes to kill price action to shake out retail in order to get more shares. Not saying it will for sure happen, but just be prepared.
2.
Who is gonna play $SUPER MICRO COMPUTER INC(SMCI)$ for earnings?
Earnings date: Tuesday, Nov 5 after market close [don't forget to vote]
Expected move: ~25%
Technical analysis isn't even necessary at this point ... and anyone sharing charts on it honestly has no clue.
With the unfortunate accounting firm news this past week, no one really knows what to expect and if the earnings results/numbers are to be believed/trusted.
So, we simply just have to see what info is released and what is said on the earnings call.
Trade Ideas:
- You could buy puts to play downside (which many are probably leaning that way) or buy calls to play the upside if you think that the MMs know most everyone is going to play downside so they will want to burn those puts and push the price the other way.
- If you are going to write options on SMCI, then "good luck to you". Premiums are juicy (rightfully so)!! If you are writing puts, then pick the lowest strike possible and be prepared to take assignment or take the loss. Writing very far OTM calls might actually be the less riskier way to play this (we know we know ... selling naked calls is more risky than selling puts) because any positive earnings results and news might be muted in the post-earnings price action since the stain of EY leaving will still linger (meaning there is such strong negative sentiment/expectation and disbelief at whatever the results might be even if really good).
We shall see how MMs and tute-traders react. Will be an interesting show to watch.
3.
Pre-earnings trade idea on: $Navitas Semiconductor Corp(NVTS)$
Earnings date: Monday, Nov 4 after market close
Expected move: ~18% (subject to change based on Monday's options action)
Pre-Earnings Trade Idea:
- Buy-to-open calls, Nov 15 expiration, $3 strike
- Calls are very cheap for this gamble, so the R/R to us from an absolute monetary spend is well worth it
- If you feel really brave, you could also sell the Nov 15 exp $2.5 put, but be prepared to take assignment of shares or close out for a loss if price dumps for earnings
Points to Consider:
- Expected move places downside to 2 and upside to 3 (subject to change based on Monday's price action)
- Volume point-of-control and volume support at 2.5
- Some volume resistance at 3
4.
$Cboe Volatility Index(VIX)$ options are in play this week if there was ever a really good week to play $VIX options.
- presidential election
- FOMC rate cut decision
- economic data (as usual)
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