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SNBR Hedged Options StrategyPopular smart bed company Sleep Number sells beds, mattresses, pillows and bedding related products directly to customers via 600+ retail stores, telephone order, and e-commerce. Adjustable temperature, firmness, motion sensing and automatic contouring, even snoring prevention technology are part of their luxury product catering to an aging population in the middle of a health and wellness boom -- with sleep as an increasingly buzzier part of the conversation. Americans buy 16+ million new mattresses a year, spending an average of ~$1000 per unit, making it a $12.55 billion industry. More people are relocating due to job/work-from-home opportunities and changing real estate trends (opting to buy a new mattress instead of moving an old one) -- the projected steady growth could become a surge. SNBR reports earnings Wednesday after market close, and posted beats for the previous 2 Q's. Here's one argument for the stock being undervalued. Technically minded investors might also see some promising chart patterns forming as well, and a buying opportunity after a major selloff in the last two years. However, with its recent loss of CFO and announcement that chip shortages were a challenge, an investment in SNBR would not be without uncertainty. Here's an options investing strategy that offers both downside protection and upside potential. Make a fixed 12% (22% annualized) at maturity as long as SNBR does not fall more than 23%. Further protection: SNBR can fall 31% through expiration before you start to lose any money. Hedged like this: Sell 2 $25 puts Exp 9/15/23 Capital requirement: $4472
NASDAQ:SNBRLong
by oliveinvest
BKI hedged options strategyBlack Knight, Inc. provides integrated software, hosting, data, and analytics services for the mortgage industry. Subsidiaries include mortgage and home equity loan application platform MSP, customer account app Servicing Digital, retention and liquidation app Loss Mitigation, loan origination systems Empower and LoanCatcher, and investor/broker community LoanSifter PPE. Black Knight also offers property ownership and lien data, automated valuation models, collateral risk scores, multiple listing service, and eSign, eClosing, and remote online notarization (RON) solutions, with plans to integrate with Wolters Kluwer's eNote and eVault for complete digitization of the mortgage application and closing process. TA-oriented investors will note a few optimistic patterns forming, as well as the CCI indicating an uptrend. But BKI also faced opposition and anti-trust regulation when it announced that it would join mortgage technology industry giant Intercontinental Exchange ICE (owner of Ellie Mae as well as the NYSE). With increased interest rates and housing inflation, will the mortgage industry take a hit? After earnings results were released Tues morning, here's a strategy that offers some downside protection while maintaining growth potential. Make a 10% yield (26% annualized) unless BKI falls more than 14% to below $54.59. Start to lose only if BKI falls by more than 19% to below $51.76 as of 7/21/23. Buy 1 $40 put Sell 2 $55 puts Exp 7/21/23 Capital requirement: $6,352
BLong
by oliveinvest
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