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Trade idea on Walmart - WMTJust as an idea: Cash secured put on Walmart, with a strike price of $134 (delta 23) and an expiry of Feb. 18, 2022. Trade would to be closed on Feb. 16, 2022, 1 day before the quarterly results, which will be published on Feb. 17, 2022, before market opening. The $134-$135 area has successfully acted as support four times over 1 year. Whether it will do it another time is of course uncertain! The additional purchase of the cheaper put with strike price 115$ reduces the margin and creates a bull put spread. This trade idea is one of the 222 trade ideas from my book "The Stock Market Year 2022: Which stocks go up and when?" Disclaimer: This trade idea is for educational purposes only and does not constitute investment advice or a solicitation to buy or sell securities or financial instruments. Investment in securities and financial instruments (especially options) are generally associated with risks, up to total loss of the invested capital and above. I am not a financial advisor. Please do your own research and make your own decisions.
NYSE:WMT
by Optionopedia
Not enough LUVAirlines are not doing well still despite a bunch of propping up by various institutions. These earnings are going to be absolute garbage and the broader market is also gonna tank too. I expect a rally to the 44-45 range with a likely rebound Monday in the broader market. After this, there is nothing holding airlines up for the foreseeable future. What bullish catalyst exists for airlines right now? They've been on life support since the get-go and the labour shortage along with Omicron has completely wiped out Q4 earnings for airlines. TA-wise, it's rejecting the 500 day MA on the daily and is looking week on the RSI and MACD. Price action suggests serious bearish sentiment in the short term. I also put up a Fib retracement from the COVID crash and it's lining up well. Basically this area being rejected is another piece of evidence for serious downside. Also an evening star on the weekly confirmed. Puts and shorts ?
NYSE:LUVShort
by nathanielandrep
URBN Earnings 1 Week OutLeadup This morning's gap comes at the one week before the earnings mark. For five of the last six earnings reports, the close on earnings day has been higher than the close one week before. Price Action URBN recently completed a trading range and broke down for an almost 20% loss. After rallying 100% from this downward breakout, URBN did a brief bit of consolidation before this morning's gap. Indicators There was no accompanying rise in volume with this gap. DI is showing bullish, and ADX is above 30, the same as three of the five positive week leadups. RSI is in overbought territory on the daily chart but shows room to go up on the weekly chart.
NASDAQ:URBNLong
by Ronald_Ryninger
PYPL Earnings PlayDescription: Neutral Calendar Spread, betting on a small move and sharp decrease in IV short term options following earnings on Monday. Long Call Calendar Spread Levels indicated by the triangle: Max gain occurs at peak Break-evens at the ends Expiration on the right side Break-evens 254.1, +9.8% 213.46, -7.8% R/R: ~5:1 Positive R/R, stop loss levels built into position. Intend to close before near term expiration. *Stops based off underlying stock price, not mark to market loss The Trade BUY 11/19 232.5C SELL 11/12 232.5C Only invest what you are willing to lose Break-evens and R/R vary on fill
NASDAQ:PYPL
by BarnardR
RBLX Earnings PlayDescription: Earnings after close today, taking advantage of high IV on same week options and covering with next week's (Calendar Spread). Long Call Calendar Spread Levels on Chart Break-evens 91.34 +16% 69.01, -12% R/R: ~4:1 Positive R/R, stop loss levels built into position. Intend to close before near term expiration. *Stops based off underlying stock price, not mark to market loss The Trade BUY 11/19 79C SELL 11/12 79C Only invest what you are willing to lose Break-evens and R/R vary on fill
NYSE:RBLX
by BarnardR
Roku Earnings PlayDescription: Earnings after close on Wednesday, taking advantage of high IV on same week options and covering with next week's (Calendar Spread). From Deltaone on Twitter: twitter.com 76% expect beat 9.5% move priced in 7.7% avg move post earnings in recent quarters Long Call Calendar Spread Levels on Chart Break-evens 344.96, +12.89% 275.74, -9.77% Downside also protected by support established in DEC of 20. R/R: ~5:1 Positive R/R, stop loss levels built into position. Intend to close before near term expiration. *Stops based off underlying stock price, not mark to market loss The Trade BUY 11/12 307.5C SELL 11/05 307.5C Only invest what you are willing to lose Break-evens and R/R vary on fill
NASDAQ:ROKU
by BarnardR
6
Unfortunately there is more pain comingEveryone is still holding and remains bullish about wish future. As i see it now although i previously thought that the bottom was around $4.70 i expect a last gap down movement with an rsi and macd divergence. Upcoming results will be loaded with all the "bad" numbers so the the new CFO and management can show some improvement towards the next Qs. Retail is going to give up here since most of us will have a loss of >-50% and no liquidity and conviction to add more. Unfortunately i also did a terrible mistake in timing this one and i could have got myself a really better average price. This is a lesson for the future to wait for BOLD confirmations when adding a position and also decrease position when things turn south. I still strongly believe that Wish can turn things around but it will be a very painful time period for all the holders left. "Pain is temporary, it may last for a minute, a day , a year but eventually it will subside and something else will take it place, if we quit however it may last forever" P.S this is not a financial advice i have no clue where the stock might go, speaking for myself i am not selling short nor adding long at the moment.
WShort
by Philoslother
8
Tutorial: How SMAC can help find the Ideal Covered Call StrikeQ3 Earning season is approaching fast Background: The earnings covered call volatility play ------------------------------------------------------------------ one of the easy earning plays if you hold a portfolio of stocks (or if you're a fan of the wheeling strategy) is to sell Covered Call (CC) right before the earnings announcement - when the volatility is inflated and the premium price peaks - usually using weekly options - which then you can close immediately after the earnings have been announced, or just leave them to expire worthless if they end up out of the money (OTM). When this play is done right, and depending on your position size, it can deliver few hundred (if not thousand) bucks literally overnight. When we design this play, we need to consider also the scenario that with the earnings announcement, the stock price may shoot over our selected strike, and we may end up getting assigned - and the stock is called away from us. However, with the proper "design" of this trade play, you can set it up for a "no-lose" trade scenario - if you don't get assigned, you keep all the call premium (not bad for a 2-day trade) - see example below - you still keep the stock. - if you get assigned, you will earn the difference between the strike price and your breakeven *plus* the covered call premium -- so a winning trade in both scenarios. if we can repeat this play for few stocks during earnings, the gain can accumulate and bring in a very "good month" for the trader who can master this play. Using the SMAC to make this scenario easier ----------------------------------------------------- One of the reasons i wrote the "Auto-stepping, Zero-lag Moving Average Channel - SMAC" script is to help me with trade scenarios like this. Let me share how. - Assume i hold 1,000 AAPL shares in my portfolio. - i just bought them couple of weeks ago - and i am planning to play the volatility and sell Covered Call into the upcoming earnings using the weekly options. - my goal is either to collect the call premium and keep holding AAPL past the earnings - or to get assigned and sell the stock and realize a profit larger than what i would have got if i just bought then sold the stock direct - my preferred strike "distance" is 5% Out of the Money (OTM) - which can give a reasonable value of premium while giving me room to still keep the stock if the price doesn't shoot that high due to the earnings. - I plot my breakeven price on the chart - say for the example here, it's $143 - Add the SMAC to the chart and set the SMAC Percent Envelop to 5% - This will immediately show what price range i should pick the Covered Call strike if i want a 5% OTM -- it's the $151 or the $152. Maybe i would pick the $152, cause if i get assigned, it would give me a larger gain on the underlying position. Calculating the P&L for both CC scenarios is also easy now on the chart --------------------------------------------------------------------------------------- - Not Assigned: after the earnings, the stock still closes below our strike - we can even leave the call to expire worthless - no commission paid - i keep the premium assume the CC premium is $1.3 by the time i sell the CC & assume i have 1,000 AAPL shares, that's $1,300 over-night! = 1% return and i still keep the stock - We get assigned with the same assumptions above, we keep $152 - $143 = $9 + the premium ( = $10 bucks per share -- that's $10,000 in 2 weeks. around 7% return) - we can buy AAPL again later on a dip. *** Big Note here --------------------- Another scenario is, if my breakeven for AAPL is above the 5% strike price level, in which case, i would not consider this trade at all - because if i sell the CC and i get assigned, i would basically close my position at a loss - again, once i set the SMAC and my BE of the chart, i can easily see if that's the case and make a fast trade decision - here's how this would look on the chart if you hold 1 or 2 positions in your portfolio - this whole SMAC / Chart thing may not be worth it - maybe a quick mental calculation or simple spreadsheet is easier :) - but if you hold 15-20 positions in your portfolio / multiple accounts, doing this fast during the earnings days and visually on a chart can save a good amount of time and give more confidence. i hope this can inspire some fellow traders to share how else they can use the Auto-stepping zero-lag Moving Average Channel Please do not treat this post as a trade recommendation - or as trading education - i'm just sharing thoughts and some of my limited experience - Please trade safely.
NASDAQ:AAPLEducation
by RedKTrader
16
Ride The Wave Ride the wave, and cash out before earnings. Technicals mean nothing for the Tesla Machine as investors want to buy in before earnings. Does this indicate we are guaranteed an EPS beat and stellar conference call? What about future outlook? I need your help on this one! Comment your thoughts on Tesla and research backed support is a must! No Tesla fanboys allowed, I am looking for facts and I will be putting the research in myself and updating this publication daily and responding to comments daily. Lets make this the ultimate hub for Tesla pre earnings Happy trading to all!
NASDAQ:TSLALong
by Myantman101
SNAP: How to proceed in this post-earnings?Hello traders and investors! Thanks to the earnings report , SNAP is flying today. But how to proceed when this happens? Is it time to buy, to sell, to go short, or just do nothing? The charts will give us an answer. If you are in SNAP, I always advise to book at least half of your profits in a day like today, just in case, and then set a technical stop-gain . On SNAP, the technical stop-gain is below the $ 73.59, as this point was the previous All-Time High, and it is supposed to work as a support in the future. In the next week I would just set a trailing stop-gain under the previous day’s low. If SNAP keeps going up, that’s great. If it drops, then ok, time to exit. Is there any chance that it’ll fill this gap? Yes, but I find this unlikely, at least for now. This is a Breakaway Gap enhanced by the earnings report, and SNAP did a breakout from the ATH by doing this gap (I like to call this Monster Gap ). The last time this happened on SNAP the momentum was so strong that it prevented even a pullback. Let’s remind SNAP on October 2020: What could happen on SNAP right now, if it can’t keep pushing up, is a sideways correction , until the 21 ema catches up with the price again in a few weeks, to offer us a new support level on SNAP. If I were out and wanted to buy SNAP, I wouldn’t count on a pullback, but I would wait for it to cool down a little bit more, and for the Risk/Reward ratio to make sense again. If I buy right now, it would feel like I would be buying from someone who bought at the last dip, and will use me to book profits. Eventually, the 21 ema will get closer to the price, and we’ll see a good opportunity then. For now, as someone who’s out, I’ll just stay out. There are many more interesting stocks around. Remember to follow me to keep in touch with my daily studies, and if you liked this idea, please, support it! Have a good weekend!
NYSE:SNAP
by Nathan_The_Finance_Hydra
23
WISH Trend Analysis following EarningsIf WISH misses with earnings this upcoming week, technicals and projected fundamentals support a break below valuation in the lower $11 range. With a test of $9.35 for the next earnings bottom range. It is likely to find support in this range and move back into test range of $11.05 and $12.18 into the following earnings. If WISH continues to beat expectations and hold progression, they have a future valuation of around $20-$21. A nice move to set up reaching this evaluation would be filling supply and demand imbalances between $15.50 and $17.50, with retracements back into $12.50-$13.00 for a move into next earnings. Good earnings there would have the equilibrium to test above range of valuation as support, moving into this years full earnings release next year during Q1 2022.
W
by rickhubbard10
1
PERI : COIL / SWING TRADEPerion Network: On The Verge Of Breaking Out To New Multi-Year Highs Israel-based provider of digital advertising solutions raises guidance for the second time in two months. Outperformance attributed to better-than-expected revenue synergies from recent acquisitions as well as higher demand for the company's Connected TV and video offerings. Search business de-risked by recent four-year contract extension with Microsoft. Management hinted to renewed growth opportunities in the press release. Company trades at a massive discount to advertising pure plays The Trade Desk and Magnite. Watch for strong guidance on the company's upcoming fourth quarter and full year 2020 earnings report on February 9. SOURCE: Henrik Alex, SeekingAlpha seekingalpha.com
NASDAQ:PERILong
by TradingMavericks
1