re: Options Trading Thread

Just popping in to say the NFLX puts at .05 Delta (Strike 392.5) expiring next week payin $50 The .02 delta (382.5) is paying $25.


As soon as Jag and the others can do a detailed explanation or example on how you guys would play this, I'm going to give it a go. Are you buying put(s) way out that's in the money say 90 days and selling puts weekly?

I’m a total rookie when it comes to options but did a bunch of reading 2 weeks ago looking at ways I could play what I expected to be an earnings bloodbath in my industry. The first one to drop was last week ONEW which missed their guidance and guided lower on the year dropped over 25% in a day. I was traveling and didn’t trade any options just not knowing that I could keep a close eye on it.

I expect some other players to have similar bad numbers in the coming weeks. Curious what the right play is from those with experience on some of these guys that are likely going to see big drops. MBUU for instance reported blow out last year but guided lower and dropped 30+%. I expect this months report will be far worse than that. Is the play to simply buy some puts that will be in the money or is there a more sophisticated play.

MBUU and MCFT I don’t expect marine max to get hammered as bad because they diversified a lot into very high end yachting and marinas.

I think both MBUU and MCFT will do ok on their Q4 number because they end it with model year in June but they will be guiding way down because the industry is getting hammered by interest rates and the general hangover associated with huge demand and price increases during the past 2 years. Biden economy is not good for boats/rv’s or powersports business. I do not have any business relationship or insider knowledge with any of these guys just understand the industry.

Anyone looking at SE for earnings call tomorrow morning? IV up. Took a small SP credit at 47/38 @ .63

I have been. I wanted to do a pmcc on it.

Will check out a few of those! I agree not too keen on getting assigned SE.

I took MNDY on Friday afternoon for earnings call this morning so far so good, 8/11 SP 140/135 @ 1.15 also started an SPX 0DTE for the 1st time to see how that goes.

JjDoc - I could be wrong but since SE has high IV going into earning call tomorrow, the PMCC may not be the best play since that is a typically a low IV environment play but maybe I am missing something?

apologies, I was thinking near term and can see how a pmcc long term could be a good option with a 24’ ITM

Question:

So my SE SPV didn't go as planned on the 18 Aug 47/38, what would your opinion be on how to best manage the vertical put credit spread? SE trading around ~42 currently. I see several ways, (1) I could close order and take 5.15 debit (about 61% of max loss if I let it ride till exp) (2) I could roll it to 25 Aug exp and take .02 credit and see if the stock gaps up in next 8 days DTE (3) See if gaps up above 47 by Friday.

I am leaning towards rolling (2)

How are we looking on WMT?

WMT for short term I will hold off until tomorrow after TGT earnings. I am long on WMT in general but short on TGT. Will probably take a weekly SVP on TGT later this afternoon, currently expected +/- 9.18 with earnings call in AM tomorrow.