ADV option strategy update

NASDAQ:ADV   Advantage Solutions Inc.
*this is not financial advice*

I've updated the colors of the lines, but I have not changed the angles or positions of the lines from my first post. The blue line is the top of the channel, the yellow line is what I've determined to be the bottom of the channel, and the orange line is a sort of "last stand" for bullish momentum. So far, this price has been moving between the blue and yellow lines.

The volatility is here. I don't believe this stock needs hype or press to maintain an uptrend, but any hype or positive press that does occur, could boost the price action significantly. I am predicting a price near or above $15 by the end of May 2021. The call options for anything above $12.5 by the end of Feb 2021 are $0.01 currently.

I paid a higher premium simply to get the orders to go through, I purchased my options at a 90-98% loss upon the orders being filled. Even before the dump at the merger... however, my losses were (and are) already locked in, and so there is no further down side. This is a very risky strategy, but with the potential for the price of the options to jump tens of thousands of percent by the strike price merely becoming more reasonable, drawing more interest to the contract. There is a high risk on this strategy that there will be no interest in the options to sell, thus it is very possible that the contracts will expire worthless. But the beauty is that it only needs buyers to believe that $12.5 or $15 strike price seem reasonable. If my near $15 prediction is correct, this will be an epic play. If I'm wrong, well then I've lost everything I put into the trade. It will be interesting to see how this works out.


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