Option Witch
Option Witch
Magic option strategies for extra income.
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2025-04-24

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
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2024-02-27

Palo Alto's Call Options Skyrocket 600% as Nancy Pelosi Discloses Purchase, Should You Buy It, Too?

$Palo Alto Networks(PANW)$ stock continued to surge over 5% in early trading on Tuesday after Congresswoman Nancy Pelosi disclosed that she bought positions in the cybersecurity company. Palo Alto stock had risen about 15% in the past three trading days.Pelosi purchased between $500,000 and $1M worth of call options in the Nikesh Arora-led company, according to a congressional trading form filed by Pelosi. The purchase was made on Feb. 12.The 83-year-old Pelosi also disclosed a call option purchase worth between $100,000 and $250,000. The purchase was made on Feb. 21, the same day shares plummeted after the company lowered its full-year revenue and billings guidance.A total number of 468,609 options related to
Palo Alto's Call Options Skyrocket 600% as Nancy Pelosi Discloses Purchase, Should You Buy It, Too?
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2025-03-17

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?
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2025-03-25

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
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2024-12-31

Option Witch | How to Play Drone Maker Companies Through Options?

Drone maker companies skyrocketed recently with $SES AI(PDYN)$ soaring over 591% this month. $Ondas Holdings(ONDS)$, $Palladyne AI(PDYN)$ shares more than doubled in December.The Trump name and Elon Musk's preference for drones over traditional jet fighters helped send the shares of a drone maker into the stratosphere.The CEO of Tesla and SpaceX criticized the F-35, a traditional fighter. He called the F-35 design "broken" and "the worst military value for the money in history." That helped send shares of F-35 maker Lockheed Martin down 8.7% this month.Lockheed's loss appears to be a gain for tiny drone manufacturers. Adding to the fervor was news that Donald Tru
Option Witch | How to Play Drone Maker Companies Through Options?
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2025-01-13

Quantum Stocks Under a Cloud? 3 Option Strategies to Navigate the Turbulence

Quantum computing stocks saw sharp declines last week after Huang’s comments, with $IonQ Inc.(IONQ)$ falling 32%, $Quantum Computing Inc.(QUBT)$ dropping 49%, and $Rigetti Computing Inc.(RGTI)$ tumbling 53%.$Meta Platforms Inc.(META)$ CEO Mark Zuckerberg agreed with $Nvidia Corp.(NVDA)$ CEO Jensen Huang‘s cautious outlook on quantum computing, saying that the technology remains years away from practical implementation.“I’m not really an expert on quantum computing, but my understanding is that it’s still quite a ways off from being a truly practical paradigm,” Zuckerberg said.Hi
Quantum Stocks Under a Cloud? 3 Option Strategies to Navigate the Turbulence
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2025-08-04

Option Witch | Palantir's 2Q May Beat Again, Two Defined-Risk Strategies in Focus

Palantir will release its second-quarter earnings after the market closes on Monday, Aug. 4. A consensus estimate calls for adjusted earnings per share of $0.14 on revenue of $939.29M. If this EPS is met by Palantir, it would mean 53.83% EPS growth year-over-year. Investors may consider defined-risk spread strategies like bull call/put spreads.Palantir Remains "Al Secular Winner"Palantir is heading into its second-quarter earnings with strong momentum. The company’s management has guided Q2 revenue between $934 million and $938 million, representing roughly 38% year-over-year growth at the midpoint. However, based on its recent performance trends and growing demand for its Artificial Intelligence Platform (AIP), there’s reason to believe Palantir might once again exceed its projections.Pip
Option Witch | Palantir's 2Q May Beat Again, Two Defined-Risk Strategies in Focus
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2024-02-05

META Sees Further Upside Despite Its Rise, Short OTM Puts to Boost Gains

$Meta Platforms, Inc.(META)$ shares surged 20.3% to a record high on Friday after issuing its first dividend days ahead of the 20th anniversary of its Facebook unit.There are 2.38 million Meta option contracts traded on Friday, 6.6 times higher than the equity's 90-day average volume. Option order flow sentiment implies that traders are wagering strong bullish bets in META stock on-balance. After converting the options volume into an equivalent number of META shares bought or sold, we can find that traders bought a net equivalent of 2,195,902 shares of META stock on Friday.Source: Market ChameleonShorting OTM Puts for META StockIn any case, short-put income plays are now very popular for shareholders. This is based on a contrarian reaction to
META Sees Further Upside Despite Its Rise, Short OTM Puts to Boost Gains
avatarOption Witch
2024-01-15

MSFT Stock Could Be Worth $455 Per Share, Short Puts for Extra Income

Microsoft’s stock market value ended a trading session higher than Apple’s for the first time since 2021 on Jan 12, making it the world’s most valuable company as worries about demand hit the iPhone maker’s shares.Apple crept up 0.2 per cent on Jan 12, while Microsoft added 1 per cent. With that, Microsoft’s market capitalisation stood at US$2.887 trillion, its highest ever, according to LSEG data. Apple’s market capitalisation was US$2.875 trillion, calculated with data in a filing on Jan 11.Source: Tiger Trade AppWorries about smartphone demand have pushed Apple’s shares down 3 per cent so far in 2024 after rallying 48 per cent in 2023. Microsoft is up about 3 per cent year to date after surging 57 per cent in 2023 in a rally driven in part by its lead in generative artificial intelligen
MSFT Stock Could Be Worth $455 Per Share, Short Puts for Extra Income
avatarOption Witch
2025-01-17

Option Witch | Netflix Analyst Predicts Q4 Subscriber Beat. How to Trade it Before Earnings Report?

$Netflix(NFLX)$ ended 2024 on a high note with two NFL football games, a halftime show by Beyonce, and the return of hit series "Squid Game." But Netflix stock was tackled for a loss to start 2025. Investors are hoping the streaming video leader can get back on track with its quarterly earnings report next week.The Los Gatos, Calif.-based company will report its fourth-quarter results late Tuesday.Earnings Estimates & Analysts OpinionsAnalysts polled by FactSet expect Netflix to earn $4.20 a share on sales of $10.12 billion in the quarter ended Dec. 31. In the year-earlier period, Netflix earned $2.11 a share on sales of $8.83 billion.Wall Street is looking for Netflix to add 8.2 million new subscribers worldwide in the fourth quarter, for a t
Option Witch | Netflix Analyst Predicts Q4 Subscriber Beat. How to Trade it Before Earnings Report?

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