Update another trading opportunity
Here's a rundown of three earnings reports this week. See:This week's earnings strategy: COST, CRM and BILI
$Salesforce(CRM)$ has not skyrocketed, however, the call exercise date is far away, so the opening and closing of the position stopped the loss of a few dollars; $Bilibili Inc.(BLBLF)$ after the release of earnings surge, but from the strike price has a certain distance, is expected to open test volatility surge can earn a few dollars; $Costco(COST)$ has risen for several days as expected and is now profitable.
Now I have a new idea.
I was going to close out costco before earnings, but after reading Nordstrom's results, I changed my mind and decided to hold until tomorrow.
The pre-market price of COST stock is 531, and the financial report should increase by more than 5% to maintain the value of CALL in hand.
While COST's results have been consistently mediocre, 5% is not an unattainable gain.
If you don't want to bear the uncertainty, you can close out the position, or wait for the close to sell, today's intraday will certainly continue to rise.
$Marvell Technology(MRVL)$ will also report earnings tomorrow. There are two ways to play with strong bullish expectations.
The first is to buy a small call bet$MRVL 20220311 70.0 CALL$, which has the advantage of rich profits when the financial statements rise, and limited losses when the financial statements collapse. The disadvantage is that the market coverage is narrow, and satisfactory returns can be obtained only when the financial statements rise.
The other way is to sell PUT$MRVL 20230120 55.0 PUT$. The advantage is that the market has a wide coverage.
The disadvantage is that the slump needs to hold 1 year of patience and so on.
Yeah, this is a put with an exercise date one year later. Big profits are a little less risky than recent puts. Choose this approach if you are confident in the fundamentals of the stock.
So I choose to short put.
After a few weeks of earnings trading, I now have a more general idea of how to bet on the winning rate. I'll take time to analyze it next week.
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[Miser]