I tried posting on this before so will have to double down as the stock has moved against me since then.
I may have confirmation bias on $WORK but $WORK is my favorite LEAPS play here. $WORK is breaking out of a channel after a double bottom below $28. Daily squeeze momentum is up & just beginning to flip over 0 line. I may have mentioned this once or twice (or a dozen times) but I really like the risk reward on $WORK Jan 2022 $30c. For one, if we get a sustained move above $30 we will easily be able to sell near term OTM calls against our position. Although the premium on these contracts is nearly 30%, we are buying near -I am arguing- a relative low, with top of range being $40. A move to top of range will see these contracts deep ITM & our initial premium paid will be all intrinsic value - this I like. Finally, $WORK on a fundamental basis is undervalued relative to growth rate/gross margin software peers.
Long $WORK.
I may have confirmation bias on $WORK but $WORK is my favorite LEAPS play here. $WORK is breaking out of a channel after a double bottom below $28. Daily squeeze momentum is up & just beginning to flip over 0 line. I may have mentioned this once or twice (or a dozen times) but I really like the risk reward on $WORK Jan 2022 $30c. For one, if we get a sustained move above $30 we will easily be able to sell near term OTM calls against our position. Although the premium on these contracts is nearly 30%, we are buying near -I am arguing- a relative low, with top of range being $40. A move to top of range will see these contracts deep ITM & our initial premium paid will be all intrinsic value - this I like. Finally, $WORK on a fundamental basis is undervalued relative to growth rate/gross margin software peers.
Long $WORK.
Comment:
Looking for a lot more here.
