Then I think that META Meta Platforms will announce massive layoffs at the earnings date, which the market loves. Mark Zuckerberg will continue spending billions on building the Metaverse, but the market won`t care as long as they fire people.
Another reason for a happy earnings ending is the FOMC decision to hike the interest rates by 25bps instead of 50bps (I assume).
Otherwise, META loses more ground against TikTok, which took over the globe. But Mark Zuckerberg doesn`t care about that, because if TikTok really becomes a threat for META (sorry, for the economy), regulators will declare it a spy app, threatening the US national security. So eventually META will prevail.
If the authorities won`t intervene to help META, i think the stock should end the year around $120.
All the above considered, looking at the META Meta Platforms options chain ahead of earnings , I would buy the $150 strike price Puts with 2023-2-17 expiration date for about $7.45 premium. If the options turn out to be profitable Before the earnings release, I would sell at least 50%.
Looking forward to read your opinion about it.
Trade active
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there is an error in the text. I wrote Puts instead of Calls. But in the chart and the rest of the text you can clearly see what i wanted to say. the premium was for calls, not puts. :)
Trade closed: target reached
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META $150 strike price calls are trading now at $33.20, from $7.45 when i wrote the article. a decent 445% gain in 3 days! The stock was trading at $184.60 intraday!
Seeing weakness in the chart with the Down move into considlation. From 146.95-149ish reistance. Can’t seem to reclaim 149 as support after a strong rejection from the high. Although im not an expert at earnings plays, im not sure if this chart could be telling us something prior to earnings ? Meta was very weak today with multiple fake breaks and massive sell rejection wicks. Although I can see your veiws for the bullish case and you def could be correct , im curious how your thoughts are on this idea I’ve stated above. Friendly discussion! Change my bearish veiw LOL
TopgOptions
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@Erictaylor, thanks for sharing your opinion. i think the upside after earnings will be temporary, based on general optimism of the market and a soft landing scenario. by the middle of the year, META should drop to $125, in my opinion.
Erictaylor
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@TopgOptions well thanks man I ended up closing my puts this morning at 147.50. Just had a bad feeling holding into earnings. Made 80$. I’m so friken glad I did. Appricate your insight too
TopgOptions
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@Erictaylor, thanks, man. happy you haven`t lost money!
Sawyer170
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puts?? I thought you said the market will love lay offs and their revenue is expected to skyrocket
TopgOptions
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@Sawyer170, sorry, I wanted to say Calls. sorry! thank you for correcting me. that was the premium for the calls.
xXCHOLSSSS
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can you do one om ehpnase and penn ?
thanks
TopgOptions
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@xXCHOLSSSS, hello, i will, but i don`t have too much time at the moment.
TradingShot
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Thanks for sharing your vision. Here is ours:
TradingBrokersView
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Have to admit this is a tough setup to trade. Have you considered a back-up plan in case this one doesn't work out?