Rocket Equities & Options Report 05-02-22 - New Options Trade ABNB
Rocket Equities & Options Update - New Options Trade ABNB
New Short Term Options Trade - ABNB Debit Put Spread $140-$131 expiring Friday May 6th.
ABNB earnings options trade - earnings are tomorrow after the close and we are making a bearish options trade for this week only.
ABNB Put Spread $140 - $131.
Buy the May 6th $140 ABNB Put
Sell the May 6th $131 ABNB Put
This will result in a net debit of about $1.80 - don't pay over $2 if the market moves lower prior to execution.
Your max loss is $180 per contract pair if ABNB closes above $140 Friday. Your max profit is $720 if ABNB closes below $131 Friday. This is an out of the money option and will expire for a max loss often, as ABNB is currently trading at $152.25.
ABNB looks like it has the potential to head back to its recent lows, which is has support around $131.00. The market is pricing in almost a $15 move in either direction on their numbers released tomorrow, so we are paying some premium but in this market that is to be expected especially for a volatile stock like ABNB.
I will have a full report out by tomorrow morning. This market looks like it has a very real chance of pulling back to at least 3,800 in the ES, which would just bring us back to the .382 of the run higher over the last 2 years from the COVID lows. The NQ has already reached a .382, so it is something the S&P is very capable of as we come into a Fed hiking cycle and supply chain issues still persisting. The market has just rebounded almost 90 ES points intra-day as I write this, yet sits just 2 points in the green right now. This volatility is how markets roll over, which is what I find most worrisome.
ABNB earnings options trade - earnings are tomorrow after the close and we are making a bearish options trade for this week only.
ABNB Put Spread $140 - $131.
Buy the May 6th $140 ABNB Put
Sell the May 6th $131 ABNB Put
This will result in a net debit of about $1.80 - don't pay over $2 if the market moves lower prior to execution.
Your max loss is $180 per contract pair if ABNB closes above $140 Friday. Your max profit is $720 if ABNB closes below $131 Friday. This is an out of the money option and will expire for a max loss often, as ABNB is currently trading at $152.25.
ABNB looks like it has the potential to head back to its recent lows, which is has support around $131.00. The market is pricing in almost a $15 move in either direction on their numbers released tomorrow, so we are paying some premium but in this market that is to be expected especially for a volatile stock like ABNB.
I will have a full report out by tomorrow morning. This market looks like it has a very real chance of pulling back to at least 3,800 in the ES, which would just bring us back to the .382 of the run higher over the last 2 years from the COVID lows. The NQ has already reached a .382, so it is something the S&P is very capable of as we come into a Fed hiking cycle and supply chain issues still persisting. The market has just rebounded almost 90 ES points intra-day as I write this, yet sits just 2 points in the green right now. This volatility is how markets roll over, which is what I find most worrisome.
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