Let's review how options traders are positioned ahead of the key results due this week.
A put seller is willing to get long the stock at the put strike in the event the stock price declines below that level — essentially they are selling insurance to other investors who are betting on a potential decline.
So if you hold the stock, maybe wait until after earnings to sell covered calls, and if you don't, wait until after earnings to sell cash covered puts.
We saw decent activity in the November $157.50 calls, however earnings were most likely not the catalyst that prompted the bullish activity.
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Persons:
Russell, Tyson, It's, Fisker
Organizations:
Tyson Foods, TSN, Target, Walmart, Materials, Taiwan Semiconductor, Applied
Locations:
LCID, 19times