Hello Investors,
This week could get a bit volatile, especially toward the end of the week. Four of the largest market cap technology stocks report earnings after Thursdays closing bell (AAPL, AMZN, FB and GOOG). They play a big roll on where markets go due to their weighting in the major indexes. In addition, they play a huge role fundamentally. They will have a huge impact on the total EPS (earnings per share) and EPS growth calculations of 2021. So, any disappointment on Thursday could be a sentiment change. With that in mind, here is our play.
We bought a bull call spread in QQQ with the game plan to adjust it to a bearish outlook on Thursday or sooner.
Bought to open: QQQ Oct 30th (weekly) 288.00 strike calls (ratio of 1)
Sold to open: QQQ Oct 30th (weekly) 292.00 strike calls (ratio of 1)
Limit debit: 0.61
Sold to open: DKNG Jan 15th (monthly) 25.00 strike puts (naked put)
Limit credit: 1.10
Sold to open: ABBVÂ Nov 20th (monthly) 92.00 strike calls (covered call)
Limit credit: 0.50
Have a great week!