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EBIX Long Options StrategyInternational SaaS and technology company Ebix offers software and e-commerce services to the insurance, financial, travel and healthcare industries. It recently announced that it closed 2022 with record volumes on AnnuityNet4 (AN4) --its annuity exchange platform that handles roughly 70% of the electronic annuity transactions in the industry, integrated with partners such as Cannex, DocuSign, OneSpan, DTCC. Other areas of business include CRM, Forex, and e-learning solutions. Fundamentally, Ebix has a market cap of 623.2M and P/E of 9.47x -- with price targets from $43-150, averaging $97. TA-oriented investors may spy some consolidation into a falling wedge as well as some possible bullish momentum. But tech stocks in general are volatile in this market, and it's hard to tell if this small cap will chop or rally. With this options strategy, capture up to 12% (20% annualized) of the potential gain while also allowing EBIX room to fall 63% before losing any of the initial investment. Hedged like this: Buy 1 $20 call Sell 1 $22.5 call Sell 3 $7.5 puts Exp 9/15/23 Capital Requirement: $2239
ELong
by oliveinvest
NEGG Hedged Options PlayHome and office electronics e-tailer Newegg Commerce sells computers, parts, accessories, home video/audio, phones, wearables, digital cameras, gaming consoles and titles, smart home entertainment products, office supplies, software, digital downloads, auto, motorcycle, marine and aviation electronics, parts, tools and equipment, home improvement tools and appliances, fitness, sports, and health products. NEGG has become a bit of a meme stock, reaching ATH of $75+ in July of 2021, but has since corrected back down to ~$1-2. With the possibility of NEGG hitting the level of the previous bottoms of this double bottom pattern (~$2.60) or falling to that previous low of 1.16, here's a fixed income strategy that captures the growth potential while also cushioning from a large drop. We can make a fixed 36% (37% annualized) as long as the stock price does not fall below $1.45. Further downside protection: only start to lose any of the investment if NEGG falls more than 44% to below $1.11 through expiration. Sell 3 $1.5 puts, exp 1/19/24 Capital Requirement: $332
NASDAQ:NEGGLong
by oliveinvest
DISH long hedged options playEveryone knows DISH Network. (Fun fact: the name is an acronym for DIgital Sky Highway.) Colorado-based Dish also does business through Sling TV and offers mobile service via Dish Wireless and prepaid service Boost Mobile, with plans to offer wireless internet and its own video streaming -- they do own Blockbuster. Dish TV has about 10 million paid subscribers. TA-oriented investors might spot some bullish signals, like the falling wedge and double bottom, while the price has recently moved above the MA. With the recent SPX / SPY / QQQ rallying, maybe it's time to consider a company at the crossroads of tech, infrastructure, media and entertainment. However, stocks' response to the latest jobs report and less-than-stellar Big Tech earnings might also give pause. Here's an options strategy that captures growth potential of 13% (21% annualized) while also providing downside protection of 35% -- start to lose only if DISH falls below $9.99 as of 9/15/23. Hedged like this: Buy 1 $15 Call Sell 1 $17.50 Call Sell 2 $10 Puts All expiring 9/15/23 Capital requirement: $1998
DLong
by oliveinvest
1
JWN Protective Options StrategyFashion retailer Nordstrom sells brand name clothing, shoes, beauty, home goods, etc in 94 large department stores as well as 240 Nordstrom Rack outlets. It also makes ~50% sales online, via their official websites as well as flash-sales from HauteLook and curator services through Trunk Club. Technically minded investors may see some opportunity in the chart (bottoming, consolidation into a falling wedge) along with optimism in the general stock market with the Fed's lower rate hike this week. The RSI has also been consistently chopping in the almost-oversold region, possibly indicating upward momentum. However, Nordstrom's weak holiday sales earnings may also cause some hesitation -- this opportunity is not without risks. With this bullish options strategy, you can capture up to 21% (22% annualized) of the potential gain with downside protection of 34% -- start to lose only if JWN falls below $12.43 as of 1/19/24 Trade Legs: Buy 1 $17.5 call Sell 1 $22.5 call Sell 2 $12.5 puts All expiring 1/19/24 Capital requirement for this strategy: $2,486
NYSE:JWNLong
by oliveinvest
LMT - MyMI Option PlayLockheed Martin not only landed on a fundamental price level today (The price that it was at before Covid March 2020 Market Crash), but it also acquire roughly a $1B in Volume total, 2nd to JNJ. We like it for the continue concerned across seas that seem to be gaining more and more tension. Whether it's Ukraine/Russia or the worries in Asia, we will be looking to place some CALLs (ITM) to hold at least back to $458 to confirm that a Support to Resistance Conversion is not being completed. If so, Lockheed could potentially lose support at the $440 Levels and move back down below the 410-420 Price Levels Regardless, we will be playing options to create a new positioning moving forward.
NYSE:LMTLong
by MyMIWallet
AMRS Options Strategy with downside protectionMultinational biotech company Amyris manufactures and sells synthetic ingredients to the clean beauty, personal care, health and wellness, flavor and fragrance, nutrition, food and beverage markets in Europe, North America, South America, and Asia. It also offers products under the Biossance, Purecane, Costa Brazil, OLIKA, and JVN brand names. Amyris also collaborated with the Infectious Disease Research Institute to develop a COVID-19 vaccine using their synthetic squalene, otherwise found naturally in sharks. As global demand increases beyond natural supplies, the company believes that synthetic ingredients are the sustainable way to go. TA-minded traders might also see some pretty bullish patterns forming (falling wedge, double bottom, even Elliot Wave on the shorter timeframes). However, with Microsoft earnings leading a drop in the stock market today, how can investors balance fear and fear of missing out? Here's a hedged #options strategy that makes a fixed 10% yield (26% annualized yield) unless $AMRS falls more than 69% to below $0.50. More downside protection: Start to lose only if AMRS falls by more than 71% to below $0.46 as of 6/16/23. Sell 5 $0.50 puts Expiring 6/16/23 Capital required: $229
ALong
by oliveinvest
GM Long Options StrategyHeritage brands are making a comeback, as if they ever really went away. General Motors makes Buicks, Cadillacs, Chevrolets, GMCs as well as vehicles under the Holden, Baojun, and Wuling brands. Known for being reliable, they are a go-to for automotive-dependent businesses such as daily rental car companies, commercial fleet customers, leasing companies, and governments. Even though Detroit-based GM is more than a century old (founded in 1908), their newest offerings include safety and security services, automatic crash response, roadside/crisis/emergency assistance, navigation, remote control applications. They are also developing self-driving technology, and a highly anticipated electric pickup truck. Other areas of business are vehicle financing (through GM Financial) and subscription services in their app ecosystem. They also re-instated dividend payouts last year, adding to investor interest. Technically, it has a couple of indicators going for it: a bullish flag, double bottom, some previous consolidation into a falling wedge. But that gap down... a good dip or a harbinger? And how to navigate this choppy stock market? This protective options strategy makes up to 18% (12% annualized) and allows GM stock price to fall up to 22% (to below $27.98) before you start to lose any money. Buy 1 $35 call Sell 1 $40 call Sell 1 $28 put All expiring 6/21/24 Capital required: $2798
NYSE:GMLong
by oliveinvest
SWK protective options strategyEveryone has some trusty item made by Stanley Black & Decker in their home, whether it's a power tool, lawn product, kitchen appliance, storage, etc. Its customers also include professional end users of its equipment for repairs, construction, lawncare, automotive, manufacturing, oil and gas pipelines, aerospace engineering and many other industries. It seems to be a broad, sprawling and necessary business. SWK is expected to report earnings in February, and is known to be a "safer" dividend stock. Technically minded investors might also see the falling wedge and double bottom as good signs. On the other hand, this market and news cycle are still volatile week to week. Yesterday's optimistic stock market rally is today's fear of recession and debt ceilings. This investing strategy is a simpler way to boost gains and shield from losses, making up to 11% (11% annualized too) on $SWK options while also allowing room for a price drop of up to 23% before you lose any money. Buy 1 $90 call Sell 1 $95 call Sell 1 $70 put All expiring 1/19/24 Capital required: $6782
NYSE:SWKLong
by oliveinvest
Hedged Options Strategy on KRNTIsrael-based Kornit Digital produces, markets and distributes high-speed industrial inkjet printers, digital printing systems, ink, software, and related products for the apparel, home decor, and printed textile industry. The company markets itself as a more sustainable alternative to overproduced goods, allowing for on-demand production as well as personalization and customization. Fashion today is also affected by social media and viral marketing. (Interesting Forbes feature.) Technically, optimists may see a falling wedge and double bottom forming. A quick peek at its profile on Yahoo Finance also shows mostly "Buy" recommendations and and "Maintains" on value... but a bearish outlook long-term. The stock market has also been wavering, and with earnings season revving up, there may be more volatility ahead. This simple variable-return options strategy would maintain growth potential of up to 21% (23% annualized) while protecting against a 23% drop (to below $20.72) as of expiration, in ~11 months. Sell 2 $25 puts 12/15/23 expiration Capital required: $4142
NASDAQ:KRNTLong
by oliveinvest
Hedged Options Strategy on APAOil is one of the few sectors that analysts are still bullish on in 2023. Long arguments include catalysts such as China's re-opening, airlines recovering, and lowered supply leading to higher oil prices. APA Corporation, formerly known as Apache, operates in the US, Egypt and the UK and is one of the largest American explorers for oil and gas properties. It owns entire lines of production from gathering to transport with four pipelines running from the Permian to the Gulf Coast, as well as 2.3 billion barrels of oil reserves. Positive earnings reports exceeded expectations, and with a recent drop in stock price, this could be a good time to enter. Dividend stocks are popular in bearish times, and APA pays a consistent one, though not the highest at ~2.3%. Elliot Wave traders will also note where APA is going in the pattern, though yesterday's doom-and-gloom market might make investors think twice about jumping in. For downside protection, this hedged options strategy could make up to 9% (17% annualized) in ~7 months while cushioning against a fall of up to 31% (to below $29.85) as of 7/21/23. Buy 1 $42.50 call Sell 1 $45 call Sell 1 $30 put 7/21/23 Capital Required: $2985
NASDAQ:APALong
by oliveinvest