

Discover more from Mystylework.trading - Options Trading Newsletter
Options Trading Newsletter - Issue #137 SPIRIT'S HIGH... (OPTIONS TODAY - EARNINGS PLAY - BULLISH ON PLTR )
SPIRIT'S HIGH... [Option Today - Earnings Play - Bullish on PLTR]
SPIRIT’S HIGH… [Options Today - EARNINGS PLAY - BULLISH ON PLTR]
“Spirits” were high over the weekend as people were preparing home decorations for the Halloween Trick or Treat walk around the neighbourhood. Spiders, Ghouls, Witches, Devil and all sorts of creepy crawlies were displayed at the lawns over Saturday afternoon. All the children were excited for the night and prepared their costume…
As nightfall came, the unexpected happened… along with strong winds, came the thunder and also rain. “Spirits” were now dampened by the wet situation and did not look like it will go away anytime soon. 2 hours passed and it was still raining cats and dogs… the roads remain empty with goodies all placed nicely at the lawn untouched, no ghoulies or witches came….
Suddenly, we heard some people calling “Trick or Treat” and it was still raining and to our surprise, droves of kids came dressed in their costumes with umbrellas of course and happily collected their bounties. I think they waited as it came close to their sleep time, they must have guessed “it’s now or never”, forget about the rain, we need to get our “Treats” and the told their mommies and daddies we have to “GO NOW”… give us an umbrella and we will be okay…
The rain did not stop the kids from having a good time for their Halloween walk around the neighbourhood. After witnessing the kids' unwavering spirit, we were reminded of our own struggles to become a good trader. Despite busting some accounts at the start, we continued to learn and persevere, because we understood that the rewards were just lying there for the take… Much like these kids, who, armed with their umbrellas, refused to let the rain keep them from their once-a-year candy quest."
As the night wrapped up and the laughter of children faded into the distance, one has to wonder, when was the last time we pursued something with such unwavering determination? In the face of life's storms, do we grab our umbrellas and march on, or do we wait for clearer skies? This Halloween, amidst the rain and the treats, the kids in our neighborhood taught us that sometimes, the sweetest rewards are earned when we push through the challenges.
What's your umbrella?"
SPX (4117)
SPX is now broken down the daily 200 MA and retesting the 4100 level. It could potentially go lower for the week before the Fed Rate Hike meeting on 1 November. Market does not expect a rate hike this round as the FedWatch monitor is already at 99.9% for rates to maintain for now. More importantly, the rate easing is only expected now in June 24. So there’s still plenty time for the market to be going down and as long as it does not go down below 3800, the October 22 uptrend is still intact.
The earnings so far is mixed and even when they surpass estimates, they quickly soldown the gains, as we saw in MSFT last week. Potentially, this week we could also see the gains from AMZN earnings being wiped out as market fear is still high with VIX trading still above 20. This week lets see if AAPL will shine on Thursday after close as the last round earnings was a disappoint.
Interesting earnings to watch this week is AMD, PYPL, PLTR and AAPL.
Trade range for the week is 4000 to 4200. The current level till 4048 would seem to be a decent support level as it was a heavy sideway volumes from April to May this year around this level.
NDX (14180)
Things does not look too good for NDX as it lost 2.6% for the week. It still have more downside than upside for now. If NDX breaks below 14,000 level, it could see the next level down to 13720.
The earnings of BIG Tech will be key for the week, AMD, AAPL, PYPL, PLTR and QCOM. As the last big rally was mainly tech driven by the Magnificent 7, so far even MSFT which was positive also went down post earnings. The market sentiment is not all that great with GLD spiking towards close on Friday going above 186 level.
Trading range for the week is between 13650 to 14600.
HANG SENG INDEX (17398)
HSI recovered some grounds this week after hitting the lows of 16879. It could potentially go higher to retest the upper resistance of the current short term down channel.
The lower support now at 16800 and resistance at 18000.
OPTIONS TODAY [EARNINGS PLAY WINNER - BUTTERFLY ON INTC]
Our Earnings Trade played out right on spot. We entered the trade when price was $34.92. The profit range was from $34 to $37 with $35.5 as the max profit level. INTC retraced post entry to $32 and on earnings it popped back up closing at $35.54, right around the max profit level. If you held close to maturity (closing Friday), the max profit of $1.24 would have been reached, giving a return of over 300%. We exited at 117% right immediately after market opened. One reason is typical of post earnings movement, it does not always stays at the same level and at times, the whole upmove/downmove would get reversed fairly quickly on profit taking/buying support. Anyway, we are happy for the results as our target was 25% profit only and we achieved 117%.
There are many more earnings coming on and if you have learnt the steps in our newsletter last week, test it out on stocks trading below $50 as a start.
OPTIONS TODAY [EARNINGS PLAY - BULLISH ON PLTR]
PLTR’s earnings is expected on Thursday after market close.
PLTR has came down after it failed to rally up to previous high of 21 in August. Nevertheless, we see that at $14 level, there is a strong support as it bounced at this level at least 3 times in the past few months.
Zacks.com has a #2 Buy ranking on PLTR and Earnings ESP is positive 4.35%.
Earnings is expected before market open on Thursday 2 Nov. Expected move for this week is $2.87 and PLTR is currently trading at $15.07.
As we are bullish on PLTR we are going to do a Super Bull Trade using a Bull Call Spread and a Naked Put.
Trade Entry (15 Dec Expiry)
Buy a Bull Call Spread - Buy $15 Call and Sell $16 Call for $0.43 debit
Sell a Naked Put at strike $12 for $0.47. Delta 18, which means we have a probability of profit of around 80% for this naked put. This naked put is also below the $14 support level.
Trade entry is for a credit of $0.04 with buying power around $500. Max profit is $1.04, which equates to around 20% ROI on buying power used.
As long as price stays above $12 on expiry, we will still make $4.
(Adjust pricing as market opens today, best entry is if PLTR price falls today)
Trade Management
We do not expect to manage the trade as the Naked Put is already fully financing the Bull Call Spread. We take the Naked Put as a form of insurance. But if price falls, we need to hold the Short Put till expiry as it will also go into losses. As long as price don’t fall below $12 till expiry, the trade should be fine. Only manage in case price drops down below $12 strike by rolling over the naked put for more time with credit.
If price jumps to expected move after earnings, we exit the trade with a 50% profit.
HELP US GROW
Thanks for being a regular reader of our newsletter. We hope you had enjoyed reading as much as we enjoyed delivering it to you over more than 2 years now. If you value what we write, we hope you can help us grow our readership. We have just touched 13 US states and 19 countries. We think we can do better with your help as you would know 1-2 friends in states or countries which we are not there yet. Recommend us to your friends, share what you have learnt from us as they might too benefit from it… Thanks in advance 😉.
TRADERS TALK
Review our past traders talk. View Past Traders Talk here.
Follow-us so you will be notified when we go live! Follow and click on the notification button, so you will never miss a show.
TIKTOK VIDEOS
AI Validation on Options Strategy - GLD ETF using Strangle. We used ChatGPT Code Interpreter to backtest the strategy and WIN probabilities. #AI #optionstrading #chatgpt #codeinterpreter
Options Today - Bullish Trade on Apple. Increase Probability of Profits from below 40% to more than 80%. Trade as explained in our Options Trading Newsletter No.124. 31 July 23
Options Today - Trade on GLD As described in our Options Trading Newsletter Issue No.123, Jade Lizard on GLD. Entry 26.7.23. [This video is AI from my personal voice] 🤭 #optionsstrategy
Understanding IV - Part 1 - Understanding IV relation to options premium and how to read different measurement of IVs.
Understanding IV- Part 2 - How to use IV to trade GLD ETF.
DELTA is one of the most important Options Greek. Understand what it represents and how to use it to improve tour trading and how it is used for hedging and also capital and return management.
Iron Condor Trade on XOP. Get FREE petrol trading options. FREE Options Trading Newsletter https://mystylework.substack.com.
How to use Advanced Options Strategies to hedge your long term stock investment for free. Learn Options Trading for Free
Trading Options Using Jade Lizzard strategy. Get free petrol subsidies trading XOM 😏 #optionstrading #investing101 #stockmarket #xom
Banks don't want you to know this secret. Revealed in one of our earlier Traders Talk in June 2021. #banksecrets #investing101 🌈✨🏝️
Generate Property like cash flows from the stock market with only one fifth the capital. #Hello2023 #propertyinvesting #rentalincome #investing #stockmarket
Investing 101. It is difficult to catch the bottom and catch the best prices but we can tranch in our buy points so we can get the best overall long term returns without missing the boat. #hello2023 #investing #apple
Trade Digest on XBI - Trading Range using Iron Condor options strategy live from Traders Talk 27 Dec 22. #optionstrading #tastyworks
Long Trade on JD. Trade setup from Traders Talk 6 Dec 22 #optionstrading #tastyworks — www.tiktok.com TikTok video from Mystylework (@mystylework.trade): "Long Trade on JD. Trade setup from Traders Talk 6 Dec 22 #optionstrading #tastyworks". JD Long Trade | 6 Dec 22 Traders Talk | Like & Share ♥️. Lazy chill out, romance overseas celebrity, 10 minutes(1019319).
Trade Digest On XLE using Iron Condor #optionstrading #optionsstrategies — www.tiktok.com TikTok video from mystylework.trade (@mystylework.trade): "Trade Digest On XLE using Iron Condor #optionstrading #optionsstrategies". Iron Condor on XLE | Trading in Range Use A Neutral strategy | Iron Condor | .... Lazy chill out, romance overseas celebrity, 10 minutes(1019319).
5 ways to reduce cost of calls. The ultimate traders' guide. #optionstrading #optionsstrategies — www.tiktok.com TikTok video from mystylework.trade (@mystylework.trade): "5 ways to reduce cost of calls. The ultimate traders' guide. #optionstrading #optionsstrategies". 5 Ways To Reduce Cost Of Calls | options trading | traders | .... Lazy chill out, romance overseas celebrity, 10 minutes(1019319).
Trading options with 68.2% probability using Expected Move 😎 #optionstrading #trading101 — www.tiktok.com TikTok video from mystylework.trade (@mystylework.trade): "Trading options with 68.2% probability using Expected Move 😎 #optionstrading #trading101". Expected Move | How to trade options | trading options | .... Corporate Uplifting Inspirational Motivational Pop Rock Piano Violins Theme Song.
mystylework.trade (@mystylework.trade) on TikTok — www.tiktok.com TikTok video from mystylework.trade (@mystylework.trade). Butterfly Trade | How to setup low cost high returns options trade | Learn to trade options | .... Lazy chill out, romance overseas celebrity, 10 minutes(1019319).
Winning Options Strategies everyday. Creating high probability low risk trades 😎 #optionstrading #optionsstrategies #elonmusk @tastytrade — www.tiktok.com TikTok video from mystylework.trade (@mystylework.trade): "Winning Options Strategies everyday. Creating high probability low risk trades 😎 #optionstrading #optionsstrategies #elonmusk @tastytrade". Elon Musk | Stock trading | Another WIN 😎 | .... Sunrise.
Twitter shareholder's meeting for takeover by Elon Musk 13 Sep 22, 10am. Lets trade... #optionstrading #optionsstrategies @tastytrade — www.tiktok.com TikTok video from mystylework.trade (@mystylework.trade): "Twitter shareholder's meeting for takeover by Elon Musk 13 Sep 22, 10am. Lets trade... #optionstrading #optionsstrategies @tastytrade". select Nov 18 expiry | Sell ATM call strike 43 | recheck ATM price on open on Monday | .... TikTok's song-like tropical house(974524).
J.Powell's Message yesterday in 1 minute... @tastytrade #optionstrading #optionstrading #stockmarket — www.tiktok.com TikTok video from mystylework.trade (@mystylework.trade): "J.Powell's Message yesterday in 1 minute... @tastytrade #optionstrading #optionstrading #stockmarket". Fed Message??? 🏦 | Responsibility For Price Stability.... | Inflation Target | .... Suns.
What to expect for this week's market.. #optionstrading #optionsstrategies — www.tiktok.com TikTok video from mystylework.trade (@mystylework.trade): "What to expect for this week's market.. #optionstrading #optionsstrategies". SPX down 141 points (3.37%) last Friday after J.Powell speech | Monday another 27 points drop | but we see some slight support at 4000 level above daily 50 MA | .... Change My Mind.
Option Trade on JD - watchlist at last Traders Talk on 9 Aug. Closed today $922 profit 🤑 #optiontrading #tradingstrategy — www.tiktok.com TikTok video from mystylework.trade (@mystylework.trade): "Option Trade on JD - watchlist at last Traders Talk on 9 Aug. Closed today $922 profit 🤑 #optiontrading #tradingstrategy". Option Trade JD covered potential trade during 9 Aug Traders Talk Entry 9 Aug Exit 26 Aug Profit $922 | watch till end to see the trade we did 😉 | Option Trades Adjustments - Based on Price Actions | .... YOU'RE MY SUNSHINE.
Hawkish remarks by J Powell crushed the market - pullback expected until Next FOMC in Sept 21. Watch for key points raised #optionstrading #optionsstrategies — www.tiktok.com TikTok video from mystylework.trade (@mystylework.trade): "Hawkish remarks by J Powell crushed the market - pullback expected until Next FOMC in Sept 21. Watch for key points raised #optionstrading #optionsstrategies". Key Points For Traders | Here's what JP said.. | > rates will go up until inflation is down to 2% | .... Flip through.
Visit and follow us at our Facebook Page for more contents!
Access here >>Facebook Page<<
DISCLOSURES
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options: https://www.theocc.com/components/docs/riskstoc.pdf
MYstyework is an Online Financial Literacy Educator and materials provided is solely by MYstylework and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, transaction or investment strategy is suitable for any person. Trading securities can involve high risk and the loss of any funds invested. MYstylework, through its contents, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors, and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. MYstylework is not in the business of transacting securities trades or an investment adviser.