re: stock tip...FSLY

quote:

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I might come in with some more short puts for 2/19 in the 88 or so range. If they both hit, FSLY looks like a good (at least) medium term hold that I could trade around.

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Today = Ouch!

Looks like I’ll have to adjust the strike on those short puts.

Yes, it seems to have some support around 100. Depending on market sentiment today, we’ll see if it can hold that level.

You never want to have too heavy an allocation in one stock. As a rule of thumb, I try not to let any one position (stocks + options) exceed 10% of my available capital. But pick whatever level works for you. If you think that you need to lighten up this position, maybe determine the price(s) that works for you and sell enough covered calls at one or more strikes to rebalance (if they hit). The implied volatility is pretty high right now, so the premiums are rich going into earnings week (and should climb even higher a day or so before the call). As of right now, *just as an example*, you could sell a 2/19 110 call for 4.80. If it hits, that would be the equivalent of selling 100 shares for 114.80. If it doesn’t hit, then you’ve reduced your cost basis by 4.80.

Just throwing an idea out there for you. Not making a recommendation, as I don’t know your goals, or what your position or allocation looks like.

GL

there is a risk holding thru earnings here relative to your cost basis. my cost basis is 28, others bought higher.

until i see an earnings miss here, i'm bullish.
nothing has changed for me about WHY i want to own it, only the share price. company execution will determine whether i change my mind.

nothing wrong with hedging here if you are way long BTW

Bought another call on today's dip.

I don't know as much about the stock but I bought in couple months ago planning to hold long. After seeing so many almost predictable fluctuations, I have started to trade this more.

Sold at 120 on one of the run ups a couple weeks ago with plans of reconsidering again on another drop. Do you think today is a good day to be back in?

Personally, I do...

I bought a year out call 2 days ago and a 2 month out call today on the drop to near 100SMA

we will see
NET was flat, LLNW was shite.
AKAM was a beat

FSLY has only reported twice since the 20’s. 2Q was a blowout but only relative to expectations. 3Q was a small (3MM) miss but only due to tiktok. If they beat and guide above analysis I’ll be happy regardless of the market reaction

That sounds more promising than I was expecting.

good prudent advice.
the stock price is slippery right now, 100 is support but not concrete support. Down to the 80s it has a floor

FSLY is a toddler with wild mood swings

I’m buying 500 FSLY and 5 puts $10 in the money 2 weeks out and 1 outside the money. I make money if the stock rises past my puts and lose very little if it drops. Hoping it hits $140 range after earnings.