Earnings Plays | $TWLO | $CHGG | $FFIV | $NXPI
$TWLO - Twilio Earnings, this company has had a major move along with the COVID-19 stay at home stocks. It provides integrations with applications such as Zendesk, Aircall, and many more. I believe the rush of usage that took place early on with all of the notifications companies had to send out has died down and because one of their pricing structures is based on usage, this might have caused some lower revenues. Anyhow, I am not betting against them. I do believe if there was a downside on this stock it will hold the $240/245 level. I would be willing to bet on Dec 2020, $240P naked put sell to collect the premium. You will get $6.00 ($600 credit) and can turn it into a vertical buy buying the $210, for $2.00. This will lower your margin needed to only $3,000 dollars instead of $24,000. Make sense? If it doesn't join our group and will teach you more!
$CHGG - Chegg Earnings, I remember using them in college .. 10 years ago. Yes folks! I went to college for Accounting/Finance at DePaul University in Chicago... :P I'm not your standard r/wallstreetbets YOLOer! They have been crushing the online at-home learning game and I believe that will continue. Robinhood traders will be stacking up on this because they've been using Chegg all year long. I would say, this one I am fairly bullish on, the riskier bet would be to buy 100 shares, and sell the $90C to help make this a covered call. The safest bet here is $70P sold naked for $2.00. Get $200 dollars and if it dips, you get shares at $68 bucks... what a deal! Then you just go on selling the $70-$75 calls until it recovers (called the income wheel strategy).
$FFIV - F5 Networks, Inc. Earnings, they are part of the cybersecurity gang. People say due to at home working, this is becoming more important... but who knows if companies are spending money on them. The chart doesn't look so strong, unfortunately. I am recommending we skip this name, I'm not confident enough in any direction. It might be a good AFTER earnings play to see what the reaction is and play that direction.
$NXPI - NXP Semiconductors Earnings, this company hopefully won't fail as much as $INTC and $LRCX did for their earnings reports... but I am a believer this will be different. The chart looks ready to break out to all-time highs again and this is more worth the risk on the upside than trying to sell puts and having a huge downside move (like $INTC Intel did... UGH! Reckless move). I would like to purchase a weekly 10/30 $140C for $2.25 on this name. If it breaks the $145 level... man this can be a home run! Let's hope it goes well, make sure you don't bet your entire house on a single earnings report, otherwise you belong to the Reddit wallstreetbets group!
Thanks, everyone! We will be having another post on some of the big names later such as $AAPL $MSFT and more!If you have not watched my latest video please see here and subscribe to our Youtube channel!