My AMD options play for earnings week!
Situation as of 30 July 2023
- Price action is around 3 MA lines - MA5/MA20/MA50 ==> very easy for bulls or bears to push through taking 3 MA lines at one go!
- 108/109 has been a constant support past weeks! ==> Break below would mean quite some liquidity to push the sell down
- Options statistics show a variation of 7% to 8% range play this week ==> Interestingly, it coincides with levels of 105 and 100!!
- Bull flag fib retracement shows we are hovering around Fib 38.2 ==> can still be bullish if there is a push
- Price action is around 3 MA lines - MA5/MA20/MA50 ==> very easy for bulls or bears to push through taking 3 MA lines at one go!
- 108/109 has been a constant support past weeks! ==> Break below would mean quite some liquidity to push the sell down
- Options statistics show a variation of 7% to 8% range play this week ==> Interestingly, it coincides with levels of 105 and 100!!
- Bull flag fib retracement shows we are hovering around Fib 38.2 ==> can still be bullish if there is a push
My approach/plays
- Positive reaction from earnings ==> Sold puts will be safe so not much concern there. Existing sold puts will be good.
- Negative reaction from earnings ==> Options statistics play means gap down to 105 and 100 and given the liquidity overhead, likely to continue sell down to 95. ==> My aim is to own some AMD, so I will be going heavy into sold puts strike 95 and 100
- Post earnings will have IV crush (helps sold options)
Good luck!
- Positive reaction from earnings ==> Sold puts will be safe so not much concern there. Existing sold puts will be good.
- Negative reaction from earnings ==> Options statistics play means gap down to 105 and 100 and given the liquidity overhead, likely to continue sell down to 95. ==> My aim is to own some AMD, so I will be going heavy into sold puts strike 95 and 100
- Post earnings will have IV crush (helps sold options)
Good luck!
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icezzz : usually how long is ur option?
AsphenOP icezzz: some of my puts for your reference. 1st column is when I sold it.
icezzz AsphenOP: Thanks, is long dated option
AsphenOP icezzz: some are long dated as I base on technical analysis. as you can see from the sold dates, those strikes were close to the prices back then. it now looks good as we are seeing current prices. I also sell a few more closer dated ones. the above are just some. I have about 15 to 20 lots of puts on it.
tamira AsphenOP: Hi friend, pls clarify for me a few things: 1. For 20231215 85PUT, have you sold it for $2.2? 2. Are you planning to buy back after its earnings report? 3. How and why did you select this strike price?
AsphenOP tamira: I sold for 1.50 as I sold it recently when the price had risen. I sold at strike 85 as it is one of the support levels I TA-ed. I am a technical trader so I go with price action. I've been aiming to own the counters at 85 or 95 or if not, just keep the premium.
After earnings I will close if it is a positive reaction as bullish + IV crush will make sold options very good.
Deposit : Good one
勿勿那年 tamira: After reading the earnings report, the data is planning to enter the market