Option Witch
Option Witch
Magic option strategies for extra income.
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Option Witch | Will Nvidia Leap to $180? Bull Call Spread Offers a Cost-Effective Play on AI Momentum

Nvidia shares surged to a record high amid renewed AI optimism and bullish forecasts from CEO Jensen Huang. With strong fundamentals, a 92% GPU market share, and accelerating demand for AI infrastructure. NVIDIA's average analyst price target stands at $172. To capitalize on the momentum cost-effectively, consider a bull call spread — buy the $170 call and sell the $180 call expiring August 1 for $NVDA.Nvidia Shares Hit Record High on Renewed AI OptimismNvidia shares hit a fresh record high on Thursday, marking a turnaround for the chip company following a rocky start to the year marked by US-China tensions over critical artificial intelligence technology. The AI chip maker is the most valuable U.S. company with a market capitalization of $3.78 trillion.The rally came as Nvidia chief execu
Option Witch | Will Nvidia Leap to $180? Bull Call Spread Offers a Cost-Effective Play on AI Momentum

Option Witch | AMD Is Closing Gap With Nvidia - Strategy to Play This Momentum

AMD stock rocketed 35% in the latest three month as it is emerging as a serious AI contender with a $10B Middle East infrastructure push and next-gen chips rivaling NVIDIA. To play this momentum, consider a cost-effective bull call spread at $0.99 per spread.AMD Secures Position in Global AI RaceIDC predicts the global market for artificial intelligence (AI) infrastructure to surpass $200 billion by 2028. AMD is, of course, strategically positioned to capture share due to its diverse portfolio of compute offerings that strike at the intersection of niche use cases, mid-high performance, and competitive prices.There is a major new AI investment hub in Saudi Arabia. AMD and HUMAIN, supported by the Saudi Public Investment Fund, invest $10 billion to develop a global AI infrastructure with 50
Option Witch | AMD Is Closing Gap With Nvidia - Strategy to Play This Momentum

Tesla's AI Story Begins, LEAPs and Spreads Offer Strategic Plays on Long-Term Upside

$Tesla(TSLA)$ launched its first U.S. robotaxi service, marking a major step in Elon Musk’s autonomous vehicle ambitions. With plans to scale to 1,000 cars and 1 million AVs by 2026, Tesla is well-positioned in a fast-growing $38.7B market.Investors may consider Tesla LEAP calls (e.g. Jan 2026 $280) for long-term upside or bull call spreads (e.g. $350/$410) for defined risk and cost control.From EVs to AI: Tesla’s Robot Era Begins$Tesla(TSLA)$ on Sunday rolled out its first robotaxi service in a U.S. city, a key part of Chief Executive Elon Musk's ambitious plans for autonomous vehicles. The launch caps a decade of Musk's promises around autonomous-vehicle technology.Musk said that it would ramp up to abo
Tesla's AI Story Begins, LEAPs and Spreads Offer Strategic Plays on Long-Term Upside

Option Witch | Undervalued Chip Stocks Are Flying Past Nvidia! Bullish Option Plays to Consider

Investors are rotating into relatively undervalued chip design and manufacturing companies this week. $Intel(INTC)$ soared 10%, $ON Semiconductor(ON)$ rose 7.3% while $STMicro(STM)$, $Microchip(MCHP)$ gained more than 6% as of Tuesday this week, strongly outperformed $Nvidia(NVDA)$’s 1.58% weekly gain.NVDA trades at a forward P/E of 33.45, significantly higher than peers like QCOM (13.52), MU (16.32). NVDA's P/S ratio of 23.65 far exceeds QCOM (4.15), MU (4.07), and AMD (7.20), suggesting profit-taking in high-growth stocks amid concerns about stretched valuations.Investors are clo
Option Witch | Undervalued Chip Stocks Are Flying Past Nvidia! Bullish Option Plays to Consider

Trump Ignites Drone Makers' Policy Shift Moment! Option Strategies to Capitalize the Supercycle

For years, drone technology has straddled the line between commercial potential and defense utility. While the technology has matured, regulatory hesitation has held back widespread adoption. That may now be changing. From air cargo and urban air mobility (UAM) to tactical military drone systems, the U.S. government is sending a clear message: it's time to secure next-generation air dominance.This moment echoes the early days of the electric vehicle revolution, where policy leadership paved the way for industrial and capital acceleration. Similarly, drones now appear to be entering the initial phase of a "policy catalyst, capital follow-through" cycle.Why This $82.5 Billion Market Is Too Big to IgnoreThe global drone market is taking off. Projected to soar from about $8.8 billion in market
Trump Ignites Drone Makers' Policy Shift Moment! Option Strategies to Capitalize the Supercycle

Option Witch | Coinbase Experienced "Watershed Moments", 2 Options Spread Setups for the Next Move

$Coinbase Global(COIN)$ experienced a significant price surge recently. The stock’s inclusion in major indices and expansion into derivatives trading strengthen its long-term outlook. Technical analysis based on the moving averages signals “strong buy” for Coinbase stock.Spread option strategies are appropriate for capitalizing on upside opportunities.Coinbase Soars on S&P Inclusion, Strategic ExpansionCoinbase shares rose 23.97% on May 13 on the news that the crypto exchange to join the S&P 500. Since going public through a direct listing in 2021, Coinbase has become a bigger part of the U.S. financial system, with bitcoin soaring in value and large institutions gaining regulatory approval to create spot bitcoin exchange-traded funds. Sha
Option Witch | Coinbase Experienced "Watershed Moments", 2 Options Spread Setups for the Next Move

Option Witch | As UnitedHealth Stock Crashes, Here's How to Trade the Volatility

$UnitedHealth(UNH)$ shares dropped sharply since mid-April, with a 22.38% single-day drop on April 17 to $454.11. The downward trend continued into May, reaching a low of $308.01 on May 14 — a 48.6% drop from the April peak.UnitedHealth faces mounting pressure from a criminal Medicare fraud probe, leadership shakeup, and soaring medical costs. With volatility elevated, spread strategies are appropriate for capitalizing on downside risk while managing exposure in a rapidly deteriorating short-term outlook.UnitedHealth Is Under Criminal InvestigationAccording to The Wall Street Journal, The Justice Department is investigating UnitedHealth Group for possible criminal Medicare fraud, people familiar with the matter said.While the exact nature of the po
Option Witch | As UnitedHealth Stock Crashes, Here's How to Trade the Volatility

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

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

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

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

Option Witch | Tesla's Make-or-Break Moment: Bearish and Bullish Options Trades to Watch

$Tesla(TSLA)$ will post its financial results for the first quarter of 2025 after market close on Tuesday, April 22, 2025. Tesla's Q1 revenue is expected to be $21.571 billion, adjusted net income will be $1.600 billion, and adjusted EPS will be $0.447, according to Bloomberg's consistent expectations.Tesla’s upcoming earnings report is expected to drive significant volatility, given the stock’s 40% YTD decline, mixed analyst sentiment, and elevated short interest. Let’s dive into the potential sscenarios and related options strategies with $Tesla(TSLA)$ stock.Profit Margin Is A Key MetricOne of the most critical metrics investors will be monitoring is Tesla's automotive gross margin.Profitability in the
Option Witch | Tesla's Make-or-Break Moment: Bearish and Bullish Options Trades to Watch

Option Witch | How To Find Options Trades This Earnings Season

As U.S. lenders begin to report earnings this week, investors' focus will likely shift from profits to bank bosses' remarks on the economy after President Donald Trump unveiled steep tariffs and triggered a market selloff.Bank executives are also likely to be quizzed during earnings calls about the market selloff that has wiped trillions of dollars off global stock indexes. Bank stocks were among the hardest hit, after rallying earlier this year on optimism that dealmaking would recover.There’s no one-size-fits-all approach to earnings trades. Option strategy choice depends on the expected move, the volatility crush, and your directional bias (if any).1. Bull Put SpreadBullish bias + high IV: Sell put spreads or naked puts just outside the expected move. These often perform well when a sto
Option Witch | How To Find Options Trades This Earnings Season

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 | 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 | 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

Option Witch | PDD at Risk of Margin Shortfall, Quarterly Revenue Likely Increases 30%

$PDD Holdings(PDD)$ is drawing attention as the Chinese multinational online commerce group and retailer prepares to announce its fourth-quarter results before the U.S. market opens on Thursday, Mar 20. So far, PDD stock has gained 12% this year.Three Things to Watch Before Earnings ReportPDD at Risk of Margin ShortfallPDD's 4Q adjusted operating margin is expected to be 25.94%, a 6.19% decline compared with the same period of 2023. That's if, like Alibaba's international digital commerce unit (AIDC), Temu incurred more costs than expected to entice both merchants and shoppers in newer overseas markets to transact on its platform. This resulted in larger-than-expected October-December losses for AIDC, including a 36% shortfall in Cainiao's profit v
Option Witch | PDD at Risk of Margin Shortfall, Quarterly Revenue Likely Increases 30%

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 | Will Nvidia Stock Dip to $100 or Signal a Buying Opportunity ahead of GTC Conference? Five Options Strategies to Consider

Nvidia stock has fallen about 13% this month, with its stock price closing at $108.76 as of Mar 11. 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 Nvidia stock.1. Moderately BearishTariff Anxiety Has Fueled Volatility in Global MarketsInvestors worried about a potential recession down the road. That exacerbated various fears in the tech sector, including around tariff threats and whether the ever-rising spending budgets pledged toward artificial-intelligence projects are sustainable.Trump’s move to widen his trade offensive comes at a hazardous juncture seven weeks into his second term. His rapid effort to
Option Witch | Will Nvidia Stock Dip to $100 or Signal a Buying Opportunity ahead of GTC Conference? Five Options Strategies to Consider

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

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