Selling puts on $SMCI into earnings, thoughts?

asked by u/fx_quant_lee · 1mo · 4 answers

Thinking about selling $SMCI 700P expiring 2/23. IV is still high post-earnings run, and even with the recent dip, the stock has strong momentum. Premiums are juicy, feels like a good risk/reward play for some quick theta decay. Hoping to capture that IV crush.

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Top answers

  • u/smoke_tester· 20 pts· 1mo

    IV is high, but so is the risk of a gap down if market sentiment shifts. Might be better to sell a spread.

  • u/range_rider_yuki· 4 pts· 1mo

    Good idea, I'm looking at the 680P for a bit more buffer. Premiums are still decent there.

  • u/range_rider_yuki· 2 pts· 1mo

    Solid play if you're comfortable with the underlying. What's your comfort level on assignment?

  • u/swing_samir· 1 pts· 1mo

    Careful, $SMCI can be volatile. Theta gang likes this but make sure you can take assignment.

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