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Option Witch
Magic option strategies for extra income.
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Option Witch | How to Play Apple's Earnings Like a Pro: 2 Options Trades to Watch

$Apple(AAPL)$ is scheduled to report its 2Q fiscal 2025 earnings on Thursday, May 1 after market close. Apple's 2Q revenue expected to rise 4% to $94.1 billion, following a 4% decline a year earlier. EPS could be up 6% to $1.61, reflecting the company's ability to maintain profitability even in a challenging market environment.Although Apple is expected to show modest growth in its 2Q earnings, supply-chain will likely remain the most discussed topic on earnings call. Let’s dive into the potential sscenarios and related options strategies with Apple stock.Apple Takes Top Spot for First-Quarter Smartphone SalesiPhone sales, which accounted for 56% of the company's revenue in Q1 FY25, will be closely scrutinised. Apple took the top spot for global s
Option Witch | How to Play Apple's Earnings Like a Pro: 2 Options Trades to Watch
avatarOption Witch
05-13 10:45

Option Witch | Tesla at a Crossroads: Use These Option Plays to Ride the Rally - or Guard Against a Reversal

Shares of $Tesla(TSLA)$ closed higher 6% on Monday trading, pushing its market cap above the $1 trillion milestone as Wall Street applauds the latest development on U.S./China trade. The stock had been under pressure in recent months as steep duties on Chinese-sourced components threatened to derail production economics for Tesla's Cybercab sedan and Semi truck. With duties now set to fall dramatically—alleviating raw-material and parts costs—investors are betting Tesla can restore margin on its near-term EV rollout. Tesla's reliance on parts from China, Mexico and Canada means any tariff thaw directly eases manufacturing headwinds.However, deliveries decline, FSD prospects in China, robotaxi competition are still uncertainties ahead. Let’s dive i
Option Witch | Tesla at a Crossroads: Use These Option Plays to Ride the Rally - or Guard Against a Reversal
avatarOption Witch
2024-02-27

Palo Alto's Call Options Skyrocket 600% as Nancy Pelosi Discloses Purchase, Should You Buy It, Too?

$Palo Alto Networks(PANW)$ stock continued to surge over 5% in early trading on Tuesday after Congresswoman Nancy Pelosi disclosed that she bought positions in the cybersecurity company. Palo Alto stock had risen about 15% in the past three trading days.Pelosi purchased between $500,000 and $1M worth of call options in the Nikesh Arora-led company, according to a congressional trading form filed by Pelosi. The purchase was made on Feb. 12.The 83-year-old Pelosi also disclosed a call option purchase worth between $100,000 and $250,000. The purchase was made on Feb. 21, the same day shares plummeted after the company lowered its full-year revenue and billings guidance.A total number of 468,609 options related to
Palo Alto's Call Options Skyrocket 600% as Nancy Pelosi Discloses Purchase, Should You Buy It, Too?

Option Witch | NIO's Q4 Losses Likely Widened, Will Cost Control Drives Profitability This Year?

$NIO(NIO)$ stock is drawing attention as the EV maker prepares to announce its fourth-quarter results before the U.S. market opens on Friday, Mar 21. So far, NIO stock has gained 12% this year.Three Things to Watch Before Earnings ReportNIO’s Q4 Losses Likely WidenedAccording to Bloomberg’s unanimous expectations, NIO to post revenue of 20.13 billion yuan for 2024Q4; Adjusted EPS is estimated to be -2.60 yuan. Nio's 4Q operating loss could have widened vs. 3Q's 5.2 billion yuan. Vehicle deliveries were up 18% sequentially, yet average selling prices maybe 5-10% lower, as the cheaper Onvo brand accounted for 27% of unit sales. A less favorable product mix likely curbed gross margin gains despite narrower retail discounts and higher plant utilization
Option Witch | NIO's Q4 Losses Likely Widened, Will Cost Control Drives Profitability This Year?

Option Witch | AMD Stock Jumps on Tariff Relief While Still Faces Uncertainty, 3 Options Strategies to Ride the Wave

$Advanced Micro Devices(AMD)$ stock gained 7% to $113.85 on Monday. News that tariffs on chips coming into the U.S. could be off the table, at least in the short term, was helping to provide a boost to shares. While Trump's whirlwind tariff offensive since his January inauguration has been marked by threats, reversals and delays, sometimes within hours of imposition deadlines. Let’s dive into the potential sscenarios and related options strategies with AMD stock.1. Moderately BullishTariff Optimism Boosts AMD StockThe market reaction indicated that investors took that as a sign the economic impact of the tariffs, particularly on inflation and growth, might not be as bad as they initially feared. That's a bit of a relief, which likely gave businesse
Option Witch | AMD Stock Jumps on Tariff Relief While Still Faces Uncertainty, 3 Options Strategies to Ride the Wave
avatarOption Witch
2024-12-31

Option Witch | How to Play Drone Maker Companies Through Options?

Drone maker companies skyrocketed recently with $SES AI(PDYN)$ soaring over 591% this month. $Ondas Holdings(ONDS)$, $Palladyne AI(PDYN)$ shares more than doubled in December.The Trump name and Elon Musk's preference for drones over traditional jet fighters helped send the shares of a drone maker into the stratosphere.The CEO of Tesla and SpaceX criticized the F-35, a traditional fighter. He called the F-35 design "broken" and "the worst military value for the money in history." That helped send shares of F-35 maker Lockheed Martin down 8.7% this month.Lockheed's loss appears to be a gain for tiny drone manufacturers. Adding to the fervor was news that Donald Tru
Option Witch | How to Play Drone Maker Companies Through Options?
avatarOption Witch
05-12 09:58

Option Witch | Sea Ltd Earnings on Deck: Options Strategies for Bulls and Bears

$Sea Limited(SE)$ stock is drawing attention as the Singapore-based internet services company is scheduled to report first-quarter 2025 results before the US market opens on Tuesday, May 13. Shares have gained more than 31% as of May 12 this year.Key Factors to Note Ahead of Q1 ResultsQ1 Revenue is Expected to Increase 31% YoYSingapore-based Sea operates Shopee, which is the largest e-commerce platform in Southeast Asia and has also expanded to parts of Latin America. Other holdings include digital-payments provider SeaMoney and Garena, a global online games developer.The Singapore-based company is expected to report a 31% increase in revenue to $4.885 billion from $3.73 billion a year ago, according to Bloomberg’s unanimous expectations. Adjusted E
Option Witch | Sea Ltd Earnings on Deck: Options Strategies for Bulls and Bears

Quantum Stocks Under a Cloud? 3 Option Strategies to Navigate the Turbulence

Quantum computing stocks saw sharp declines last week after Huang’s comments, with $IonQ Inc.(IONQ)$ falling 32%, $Quantum Computing Inc.(QUBT)$ dropping 49%, and $Rigetti Computing Inc.(RGTI)$ tumbling 53%.$Meta Platforms Inc.(META)$ CEO Mark Zuckerberg agreed with $Nvidia Corp.(NVDA)$ CEO Jensen Huang‘s cautious outlook on quantum computing, saying that the technology remains years away from practical implementation.“I’m not really an expert on quantum computing, but my understanding is that it’s still quite a ways off from being a truly practical paradigm,” Zuckerberg said.Hi
Quantum Stocks Under a Cloud? 3 Option Strategies to Navigate the Turbulence
avatarOption Witch
2024-02-05

META Sees Further Upside Despite Its Rise, Short OTM Puts to Boost Gains

$Meta Platforms, Inc.(META)$ shares surged 20.3% to a record high on Friday after issuing its first dividend days ahead of the 20th anniversary of its Facebook unit.There are 2.38 million Meta option contracts traded on Friday, 6.6 times higher than the equity's 90-day average volume. Option order flow sentiment implies that traders are wagering strong bullish bets in META stock on-balance. After converting the options volume into an equivalent number of META shares bought or sold, we can find that traders bought a net equivalent of 2,195,902 shares of META stock on Friday.Source: Market ChameleonShorting OTM Puts for META StockIn any case, short-put income plays are now very popular for shareholders. This is based on a contrarian reaction to
META Sees Further Upside Despite Its Rise, Short OTM Puts to Boost Gains
avatarOption Witch
2024-01-15

MSFT Stock Could Be Worth $455 Per Share, Short Puts for Extra Income

Microsoft’s stock market value ended a trading session higher than Apple’s for the first time since 2021 on Jan 12, making it the world’s most valuable company as worries about demand hit the iPhone maker’s shares.Apple crept up 0.2 per cent on Jan 12, while Microsoft added 1 per cent. With that, Microsoft’s market capitalisation stood at US$2.887 trillion, its highest ever, according to LSEG data. Apple’s market capitalisation was US$2.875 trillion, calculated with data in a filing on Jan 11.Source: Tiger Trade AppWorries about smartphone demand have pushed Apple’s shares down 3 per cent so far in 2024 after rallying 48 per cent in 2023. Microsoft is up about 3 per cent year to date after surging 57 per cent in 2023 in a rally driven in part by its lead in generative artificial intelligen
MSFT Stock Could Be Worth $455 Per Share, Short Puts for Extra Income

Option Witch | Netflix Analyst Predicts Q4 Subscriber Beat. How to Trade it Before Earnings Report?

$Netflix(NFLX)$ ended 2024 on a high note with two NFL football games, a halftime show by Beyonce, and the return of hit series "Squid Game." But Netflix stock was tackled for a loss to start 2025. Investors are hoping the streaming video leader can get back on track with its quarterly earnings report next week.The Los Gatos, Calif.-based company will report its fourth-quarter results late Tuesday.Earnings Estimates & Analysts OpinionsAnalysts polled by FactSet expect Netflix to earn $4.20 a share on sales of $10.12 billion in the quarter ended Dec. 31. In the year-earlier period, Netflix earned $2.11 a share on sales of $8.83 billion.Wall Street is looking for Netflix to add 8.2 million new subscribers worldwide in the fourth quarter, for a t
Option Witch | Netflix Analyst Predicts Q4 Subscriber Beat. How to Trade it Before Earnings Report?

Two Options Strategies for Tesla Before Tariff Announcement, Delivery Numbers

President Donald Trump will announce his reciprocal tariff push on Wednesday during an event in the White House Rose Garden. Trump’s tariffs target imported vehicles/parts. While Tesla produces domestically, CEO Elon Musk warns of “significant impact” due to reliance on foreign components.Tesla’s implied volatility is at 96.3% for April 4 puts, favoring sellers. Post-announcement IV collapse (if tariffs are benign) could reduce premium attractiveness but lower assignment risk. Let’s dive into the potential sscenarios and related options strategies.US Automakers Make Mad Dash to Persuade Trump to Temper Tariffs$Ford Motor Co.(F)$, $General Motors Co.(GM)$ and Stellantis NV are lobbying the administration to exc
Two Options Strategies for Tesla Before Tariff Announcement, Delivery Numbers

Option Witch | Tesla Stock Gets a Boost From Trump's Car Loan Interest Deduction, While "Buyers Strike" Is Still a Problem

Tesla stock dropped in recent trading days as investors considered tariffs, weak Chinese sales data, and the impact of a "buyers strike" on the electric-vehicle maker. However, it’s not all bad news for Tesla as Trump says he wants to make interest payments on car loans tax deductible if the cars are made in America. Let’s dive into the potential sscenarios and related options strategies with Tesla stock.1. Bullish OutlookTrump to Make Interest Payments on Car Loans Tax DeductiblePresident Donald Trump delivered the biggest speech of his presidency yet, he stopped short of saying if he would claw back some of this week’s levies on Canada and Mexico, though Commerce Secretary Howard Lutnick has suggested a partial reprieve from the duties could be coming.On taxation, Trump proposed sweeping
Option Witch | Tesla Stock Gets a Boost From Trump's Car Loan Interest Deduction, While "Buyers Strike" Is Still a Problem

Option Witch | Will Tesla Stock Dip Below $300 or Just Signal a Prime Buying Opportunity?

Tesla stock has fallen 18.3% this month, with its stock price closing at $330.53 as of Feb 24. On the one hand, investors may worry that the selling pressure would accelerate. On the other hand, they don’t want to miss the opportunity to buy the dip. Let’s dive into the potential sscenarios and related options strategies with Tesla stock.1. Moderately BearishWhile Tesla’s technicals and sentiment skew bearish on weak sales, a sharp drop below $300 within a month (requiring 9% decline) would need a catalyst. The options market just assigns a 21% probability to this scenario. A bear put spread strategy may be less risky if you are not optimistic about Tesla’s future performance.Tesla Sales Fall 45% in Europe as Rivals’ EV Registrations SoarTesla Inc.’s sales plunged 45% last month across Eur
Option Witch | Will Tesla Stock Dip Below $300 or Just Signal a Prime Buying Opportunity?

Option Witch | Strategies for Alphabet, Meta and Oracle After Microsoft's Data Center Pullback

$Microsoft(MSFT)$ has abandoned data center projects set to use 2 gigawatts of electricity in the U.S. and Europe in the last six months due to an oversupply relative to its current demand forecast, TD Cowen analysts said on Wednesday.The tech giant's withdrawal from new capacity leasing was largely led by the decision not to support additional training workloads from ChatGPT maker OpenAI, the analysts led by Michael Elias said in a note.Let’s dive into the potential sscenarios and related options strategies.1. Microsoft's Pullback Creates Opportunities for Alphabet and MetaTD Cowen's supply chain checks indicate that $Microsoft(MSFT)$'s pullback has led to $Alphabe
Option Witch | Strategies for Alphabet, Meta and Oracle After Microsoft's Data Center Pullback

Option Witch | GOOGL Earnings on Deck: Positioning with Vertical Spreads Amid Cloud Growth & DOJ Risk

$Alphabet(GOOGL)$ is scheduled to report results for the first quarter of 2025 after market close on Thursday, April 24, 2025. Alphabet's Q1 revenue is expected to be $75.434 billion, adjusted net income will be $24.783 billion, and adjusted EPS is expected to be $2.032, according to Bloomberg's consistent expectations.Alphabet’s upcoming earnings report is expected to drive significant volatility, given the stock’s 20% YTD decline, regulatory and legal risks, and google cloud growth. Let’s dive into the potential sscenarios and related options strategies with $Alphabet(GOOGL)$ stock.Regulatory and Legal RisksAlphabet's Google needs strong measures imposed on it to prevent it from using its artificial i
Option Witch | GOOGL Earnings on Deck: Positioning with Vertical Spreads Amid Cloud Growth & DOJ Risk

Quantum Stocks Skyrocket! 6 Options Strategies to Ride the Wave

Inspired by advances, investor excitement, and speculative trading, quantum computing stocks have lately exploded. $Quantum Computing(QUBT)$ and $Rigetti Computing(RGTI)$ turned out to be two of the biggest winners in 2024 as we close off another wild one for the stock market. QUBT and RGTI stock have skyrocketed 1,712% and 1,449% respectively. Alphabet's revelation of its "Willow" quantum chip—capable of tackling difficult problems in minutes—was a major impetus. Alphabet and other emerging businesses in the niche are positioned as leaders in this fast-evolving sector, which will continue attracting investor attention.Government contracts add to the sector's legitimacy. Further proving the practical uses
Quantum Stocks Skyrocket! 6 Options Strategies to Ride the Wave

Tesla's Rollercoaster Ride: 5 Options Strategies to Hedge While Allowing for Upside Potential

$Tesla(TSLA)$ stock roared back 8.22% on Friday, helped by a big price-target boost from a Wall Street analyst. The stock dropped 6.1% last Thursday and closed at $379.28, leaving it down 21% from a record close of $479.86 in December.Tesla reported fourth-quarter deliveries on Thursday, posting a respectable 495,570 vehicles sold. The number was a quarterly record but still fell short of Wall Street estimates by some 10,000 units.Investors are focused more on 2025 right now. Tesla is expected to launch a lower-priced model, helping boost volume growth. The car, due out in early 2025, should start around $30,000 before any federal or state subsidies.Then there is artificial intelligence. Tesla uses AI to train its autonomous driving software and p
Tesla's Rollercoaster Ride: 5 Options Strategies to Hedge While Allowing for Upside Potential
avatarOption Witch
2024-11-20

Here's How to Hedge Nvidia Earnings for the Broader Market Risks

Will $Nvidia(NVDA)$’s much-awaited earnings report on Wednesday reignite the AI trade?Investors are positioning for another big run in the graphic-chip maker’s stock following the report. The composite implied volatility of NVDA options soared to 94.9 ahead of earnings, up around 60% from a month ago.Source: Market ChameleonNvidia Options Are Somewhat ExpensiveThe spikes in implied volatility are mostly related to earnings announcements. As the chart shows, the options are beginning to jump higher in terms of implied volatility. The stock price often gaps after the earnings because there are some surprises in the earnings report. Nvidia's dominance in the AI-driven technology trade has turned its earnings into a barometer for overall market sentim
Here's How to Hedge Nvidia Earnings for the Broader Market Risks
avatarOption Witch
2024-01-31

Option Witch | Tesla Stock Is Facing Obstacles - Sell Covered Calls for Protection

$Tesla(TSLA)$ recently reported weaker-than-expected Q4 earnings, sending shares tumbling more than 12% the following day. Lackluster growth, margin headwinds, and the lack of a clear outlook were the driving forces for the selloff.Despite already being down 23% in 2024, it seems that the path of least resistance is not upside. Elon Musk's $55 billion pack package at electric vehicle maker Tesla was voided by a Delaware judge after a shareholder lawsuit claimed his hefty pay package was unduly approved. Tesla shares fell 2.94% to $184.96 in premarket trading on Wednesday.Since Tesla stock is facing some obstacles. This is good for near-term expiring covered call option plays. Investors can make extra income with these trades.Selling covered call o
Option Witch | Tesla Stock Is Facing Obstacles - Sell Covered Calls for Protection

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