Option Strategies: SNOW& META
Hello everyone! Today i want to share some option strategies with you!
1.
Idea on $Meta Platforms, Inc.(META)$
Earnings date: Jan. 29 after market close
Expected move: 6.5%
Trade ideas:
- Sell-to-open cash-secured puts, Jan 31 expiration, targeting strikes in the 540-590 range. Playing this for assignment of shares.
- Am also looking at a 1x1x1 buy-write-write on the Jan 31 exp, 635/632.5/600 put strikes
- Buy-to-open call debit spread, Feb 7 exp, 700/705 call strikes
Points to consider:
- Expected move places downside to 634 and upside to 722
- 20% to downside from current price is at 539
- 200EMA is at 539/540
- Volume stack between 560-590 levels
- Volume point-of-control at 560-570
- Gamma is heavier on the call strikes vs. put strikes (700 call is biggest stack)
note: price levels subject to change based on tomorrow's price action
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2.
$Snowflake(SNOW)$ looked to be trading weak during intraday sessions as many times a pump at the open was sold off throughout the day. Looked like it couldn't stay above the 177.5 level when it challenged that level multiple times. So, we sold covered calls at the 177.5 strike expiring this week betting that SNOW would not be able to hold above it.
Well, we got proven wrong and got our ass handed to us today. What a move on SNOW!
If we let these calls get assigned, then the overall trade will still close in profit, but will be leaving a lot on the table. If we roll to a higher strike for next week to try and capture more upside, then we're taking a big loss to the P/L for this week. Obviously, we'd be assuming that SNOW holds above 177.5 for next week if we roll.
Decisions decisions ... 🤔
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