Good morning!
I do not get this reaction at all. They delayed the roll-out of their new state of the art chips while blowing out estimates on top and bottom line selling the old chips. WTF is wrong with traders? Data center was up 43%. Memory was up 76% (small unit) and IoT is going nowhere, surprisingly. Company will make $4.85/share this year and it's dropping to $52? Idiots!
- In the STP, let's sell 20 of the 2022 $50 puts for $8.50 ($17,000)
- In the LTP, let's sell 20 of the 2022 $50 puts for $8.50 ($17,000) and buy 50 of the 2022 $45 calls for $11 ($55,000) and wait for a bounce to sell short calls.
- In the Earnings Portfolio, let's sell 10 of the 2022 $50 puts for $8.50 ($8,500) and buy 25 of the 2022 $45 ($11)/$55 ($6.50) bull call spreads for $4.50 ($11,250) and that's net $2,750 on the $25,000 spread that's $12,500 in the money so $22,250 (809%) upside potential is worth a toss.
