2022-07-01

Calls on ILMN

This is one I was posting as a short target earlier this year. Now I'm buying calls in case of a snap back rally.
Posted by at 3:38 PM
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3 comments:

  1. AnonymousJuly 3, 2022 at 10:49 AM

    LZ, may I please ask what calls r u buying? (No, I won’t FOMO into it. I’m a chicken. I might just peck.)

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    Replies
    1. LZJuly 3, 2022 at 2:24 PM

      I don't think this trade will be good on Tuesday, because I expect it will blow up one way or another. I bought $215 strike July calls. It's a small trade. I think buy LABU, or deep ITM $IBB calls for August are more appropriate and still high risk. I have more on USO, and could have more on TLT/ZB again, than I have on biotech. ILMN is more of a "what if I'm right?" bet on top of the already risky biotech bet.

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    2. AnonymousJuly 3, 2022 at 5:17 PM

      Thanks for getting back to me on the weekend, LZ. … I did trade some LABU OTM July calls (bought and bailed 2 days later, after it rose a little but appeared weak) like you contemplated earlier. Also sold some Jan ‘23 puts at multiple OTM strikes, in order to DCA as it drops and build a long position to hopefully profit from an eventual rebound. But, since many of these companies aren’t yet commercially viable, I’m not sure how much I should really risk owning. Although buying short-dated calls is typically considered a riskier trade probability-wise, it risks less capital than my selling puts. I need to think more about when to do one than the other. … Anyway, thanks again!

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