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Options Corner: META
Youtubeยท 2025-10-29 13:15
Core Viewpoint - The discussion focuses on bullish options strategies for a stock priced over $750, with an emphasis on the upcoming earnings report and the implications of capital expenditure (capex) and AI monetization [2][12]. Group 1: Options Strategies - The first strategy involves buying a 750 strike call in the November 7th weekly options, taking advantage of higher implied volatility [3]. - A short put vertical strategy is also presented, which involves selling a 720 put and buying a 700 put, aiming for a neutral to bullish position with a potential profit of approximately $500 per spread and a risk of $1,500 [4][5]. - The break-even point for the short put vertical is set at $715, which is about 5% below the current share price, with a 68% probability that the short 720 strike will be out of the money at expiration [6][7]. Group 2: Bullish Call Diagonal - A more aggressive strategy is introduced with a bullish call diagonal, involving buying a 750 strike call and selling an 800 strike call, with a risk of approximately $2,200 per spread [8][10]. - Profitability for the bullish call diagonal begins above $760, with the maximum profit occurring near the 800 strike [9][10]. - The strategy benefits from a disparity in implied volatility, as the 750 call has a 58% implied volatility while the 800 call has nearly 100%, which lowers the entry point for this aggressive position [10][11].