Option Strategies: TSM Earning Report is Coming!

Selling For Premium
04-16

1.

"Smart traders look to sell premium" when the VIX is over 40, thus taking advantage of the elevated volatility and hence elevated premiums.

$Cboe Volatility Index(VIX)$ over 40 isn't a sustainable event, and eventually fear subsides and the VIX calms and comes back down.

2.

$Taiwan Semiconductor Manufacturing(TSM)$ announces earnings on Thursday, April 17 before market open. Been seeing some differences in expected move from various data providers, but essentially the move is in the 5-7% range.

Optionselling Trade :

Am looking to write a put ladder, selling-to-open the April 25 expiration and targeting the following areas

- recent bottom at 134

- unfilled gap at 103

- and maybe the 115 area

Points To Consider :

- The goal of these trades is premium capture, but those lower strikes do present an attractive R/R to go long (get assigned) if breached

- Market environment and gamma exposure on TSM is leaning towards the downside

- TSM did report strong YoY for Q1 and MoM revenue growth, but will that be enough to warrant a stock price pump considering that they may skip out on forward guidance with all these unknowns in the current tariff/trade war environment

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