Tips For A Financial Report Season
First, let's talk $Taiwan Semiconductor Manufacturing(TSM)$ financial reporting strategy.
Yesterday, I bet TSM on bullish financial results. Chip demand is still tight. The price increase of automobiles is one of the reasons why inflation in the United States can't come down. So we continue to be optimistic about chips this year.
Moreover, TSMC, like automobile companies, publishes reports every months. From the monthly report in December, the results are good, so it should be this year's outlook that determines the stock price. After the financial report is announced, it should not fall sharply, but it may rise sharply or the reaction may be mediocre.
Considering that, I choose to short put + long call. If the stock price is flat, then the premium from short put will offset the decline in call premium, and I will not lose money; If stock falls, put premium offset call premium, but it takes some time to take over.
For the price, I chose put'exercise price at 123 on January 21st and call's exercise price at 135 on the same expiration date. Judging from today's pre-market results, the income is not bad.
Of course, the above operation is a bit of a gambling component in it, so let's share a tip with a certainty of more than 90%.
A company's financial report rises sharply, which will drive companies in the same industry to rise together on the same day.
For example, TSMC's financial report rose sharply today, but$NVIDIA Corp(NVDA)$ price is actually-0.43%, the same as $AMD(AMD)$. This is a good opportunity. Although there is only one more point, the pocket money given by the market is not earned for nothing. You can pay attention to such opportunities later.
Short put pools today:
| Ticker symbol | Annualized income | Expiration date | strike price | Premium | Implied volatility |
| $TSLA 20220121 945.0 PUT$ | 14.6% | 2022/1/21 | 945 | 4 | 70% |
| Artificial selection | |||||
| $NVDA 20220121 250.0 PUT$ | 11.0% | 2022/1/21 | 240 | 0.78 | 51% |
| $AMD 20220121 123.0 PUT$ | 14.0% | 2022/1/21 | 123 | 0.48 | 52% |
| $AAPL 20220121 165.0 PUT$ | 6.9% | 2022/1/21 | 165 | 0.3 | 29% |
In addition to the advantages of TSMC, my data pool results show that only Tesla has abnormal fluctuations. What does that mean? It shows that these people in the market know that NVIDIA AMD is stable and does not need option hedging, so what are you waiting for? Buy it.
$Tesla Motors(TSLA)$Meeting every day is still the first choice for short put. The exercise price increases with the stock price.
In other words, Tesla is a rare stock: stocks are very valuable, and the fluctuation of stock price is between stable and unstable, which leads to high put volatility. The only drawback is that the stock price is too high, and the high margin limits the short put threshold.
Nvidia AMD Apple put it here today, and the exercise price was chosen by me, which is the supporting price. If you want to get TSMC's good and are afraid that the market will be stabbed, you can also choose short put, which can earn some money.
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good read