To The Moon

This week's earnings highlights include $Netflix(NFLX)$ , $ASML Holding NV(ASML)$ , $Tesla Motors(TSLA)$ , and $Snap Inc(SNAP)$ . Following is an analysis of financial statements corresponding to each option strategy.

$Tesla Motors(TSLA)$

Focus companies are at the top. On the earnings front, the consensus is for Tesla to report revenue of $17.78 billion, or $2.26 a share, compared with earnings of 93 cents a share and revenue of $10.39 billion a year ago. Production and delivery guidance for 2022 will be a key focus for the market.

From the range of strike price selection, there are two interpretations of the strike price given by the large order: one is that the fluctuation of the financial statement is no more than 5%, roughly between $1050 and $950. Another explanation is that the results were too unexpected to assess and so firms opted for straddle options altogether. That means earnings could rise or fall by more than 10%.

Based on this quarter and past experience, I personally prefer the first option, which is no more than 5% volatility. Further predictions are that tesla's post-earnings rally will not exceed 1050. Therefore, the spread strategy of call will be suitable in theory. That is to sell the call$TSLA 20220422 1050.0 CALL$ and buy another call at a higher price, but according to this expectation, it can also be done after earnings.

$Netflix(NFLX)$

This company only recommends buying put$NFLX 20220520 250.0 PUT$. Morgan Stanley again lowered its global outlook for net new paying subscribers, to 2 million from an estimated 2.5 million. I also suspect that guidance for the next quarter and the full year will remain below expectations.

The option can also be traded after earnings. If earnings miss expectations, that's the best opportunity to short.

$ASML Holding NV(ASML)$

ASML has no change before this earnings report, which means that the market believes that ASML has no change in this earnings report. The good news is it won't crash, and the bad news is it won't surge to rescue the ailing semiconductor sector. I think the opportunity for ASML will come after the earnings report.

$Snap Inc(SNAP)$

Snap Inc expects first-quarter revenue to be between $1.03 billion and $1.08 billion, up 34% to 38% from a year earlier. Daus range from 328 million to 330 million. That compares with 319 million in the previous quarter and 280 million in the same period last year.

From the strike price distribution, the market on the financial results of bullish bias. The distribution of call strike price is generally on the high side, and the obvious combination of price difference can be seen. I don't expect the stock to go above 39 after this earnings report,

I think it is a good way to reduce the cost of earnings options by using the spread combination. Tomorrow we will see which companies can do next week's earnings report.

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Sell Put

While the broader market is on the ropes, this week's sell puts continue, especially for Apple (AAPL). This year's apple Sell put is sure to pay off well.

Taking into account the two weeks of market will be bottom, the target line price was lowered, selected in the support of the following near. Friends who have sold PUT in high positions before can consider buying PUT for protection, especially in the semiconductor sector. Protection put prices can be selected above the support level.

AMD and INTC I did not select into, I think these two days to $87 ~ 89 sell put again better. INTC, another day down.

​​Support for Nvidia is $195.

MSFT support at $269, but next week earnings so the maturity date is this week.

Although Apple also reports next week, BUT I think it is ok to have a sell put earnings.