Hood contractionHOOD contracts leading into Aug 7 earnings. Note the bottoming stochastic RSI. I believe small caps are going to take control here after the recent bullish inflation print. I have a rather large weight bet in my smaller account on HOOD with a complex spread. My target leading into Aug 7 is 25-27$
The Setup (I noted that hood was the slowest to move for my option watchlist last Friday, so I took advantage)
2026 18$ LEAPs for continuous exposure to price action
-These will allow me to sell low delta covered-calls if earnings pumps the price, or I can simply hold these for capital appreciation
8/16 25$ calls (riskiest part of trade)
-These are a cheap way to lever my bet but I have to watch for the 21 theta decay ramp
-The goal with these is to fully exit on a pre-earnings rally, waiting until Aug 7 will cause too much theta decay
9/20 24$ calls
-These allow me to continue potential intrinsic value with the lower strike, less theta decay and more chance to capture rising implied volatility
7/19 and 7/26 22$ cash secured puts
-Since I am so bullish on small caps and hood is so popular I went for high delta premiums, I am fine with getting assigned here but my entries were so good I will likely capture most of the premium on these
