Options Action: Implied moves ahead of earnings for Broadcom, Lululemon and others

Key Concepts:

• Earnings reports
• Implied move (options)
• Cash-covered put
• Weekly options
• Call spread

Earnings Reports and Implied Moves:

The speaker, Mike Co, discusses upcoming earnings reports for several companies and their implied moves based on options activity. He mentions:

• Broadcom: Implying a move of approximately 6% after their earnings report.
• Salesforce: Implying a move of 7.4%.
• Figma: Implying a move of 8.7%.
• Lululemon: Implying a move of 12%.

Salesforce: Cash-Covered Put Strategy

Mike Co identifies a potential opportunity in Salesforce using a cash-covered put strategy.

• Strategy: Selling cash-covered puts on Salesforce.
• Specifics: He suggests looking at the October 10th weekly options and selling the 225 puts.
• Premium: These puts could be sold for approximately $3.55 each.
• Rationale: If the stock falls, the investor would be obligated to buy the stock at $225, which is below the 52-week low. This is presented as an attractive entry point.

Salesforce: Call Spread Strategy (More Complicated)

For investors seeking a more complex strategy, Mike Co suggests selling a call spread on Salesforce.

• Strategy: Selling the 285/290 call spread.
• Details: The transcript ends abruptly before providing further details on the potential profit or risk associated with this strategy.

Conclusion:

The speaker highlights potential trading opportunities based on upcoming earnings reports, focusing on Salesforce. He suggests a cash-covered put strategy as a potentially lower-risk approach, given the $225 strike price is below the 52-week low. He also mentions a more complex call spread strategy, but the details are cut off. The main takeaway is to consider options strategies around earnings reports, specifically using cash-covered puts on Salesforce.