Analyzing the options chain and the chart patterns of AAP Advance Auto Parts prior to the earnings report this week, I would consider purchasing the 70usd strike price at the money Puts with an expiration date of 2023-9-1, for a premium of approximately $5.55. If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
Trade closed: target reached
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AAP traded at $66.33 after earnings, but I haven`t monitored the options. They were profitable for sure at that intraday low.