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MSFT still respecting key levels (options)Trading options based on key levels to take profit can be an effective strategy for investors looking to capitalize on short-term price movements. These key levels, also known as support and resistance levels, are often identified by analyzing historical price data and identifying areas where prices have previously stalled or reversed. By entering trades at these key levels and setting profit targets accordingly, investors can limit their risk and potentially realize gains in a shorter period of time. However, it's important to remember that trading options involves risk and investors should have a solid understanding of options trading and market analysis before attempting to use this strategy. I created these key levels on MSFT in December and they still hold true today. Red levels are daily levels, yellow are hourly levels, and orange are your intraday levels. By my estimation, MSFT looks like it will bounce and find resistance at $260, but if it breaks through, it should go to $264 next. However, if MSFT breaks down tomorrow, we should reasonably target a move to $253 and a further move would go to about $247. Todays price action was lackluster. There was a nice trendy move at the beginning of the day but it almost completely reversed itself. Watch the wavemaster indicator on lower timeframes for a sign of what is to come next. Right now, I see us in the middle of a range with a higher potential we bounce tomorrow vs go down.
NASDAQ:MSFT
by bitdoctor
TSLA - MyMI Short Option PlaysWe purchased a variety of options throughout these mornings Price Actions with the markets opening for the week. As we expected in our last analysis, we were looking for a Double Rejection of or around the $214's and TSLA couldn't hold or create support above those levels. So we started looking for entries into Shorts last week but didn't stack them up until today due to the long weekend. Purchase some SPY PUTs simultaneously to see some potential settlement in the recent Bull pushes that we've seen in some good other names (some vs. our own expectation of their price actions). Everyone has provided a strong focus on the $152-$153 Gap that hasn't been backfilled yet so we're expecting some decent pullback and at least riding this week to retest $188. If we see strong momentum in our TA Indies then we will look at $172 next at least. Well definitely be okay with a sale at the $188, a short-term reversal ride and then making our way back to $150 if we even see it that steep. Overall we closed green for the day and expect potentially a strong push if there is an overacted sale of the current Red Descending Trend/Triangle that you can see forming.
NASDAQ:TSLAShort
by MyMIWallet
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