HOOD contracts leading into Aug 7 earnings. Note the bottoming stochastic RSI. I believe small caps are going to take control here after the recent bullish inflation print. I have a rather large weight bet in my smaller account on HOOD with a complex spread. My target leading into Aug 7 is 25-27$
The Setup (I noted that hood was the slowest to move for my option watchlist last Friday, so I took advantage)
2026 18$ LEAPs for continuous exposure to price action
-These will allow me to sell low delta covered-calls if earnings pumps the price, or I can simply hold these for capital appreciation
8/16 25$ calls (riskiest part of trade)
-These are a cheap way to lever my bet but I have to watch for the 21 theta decay ramp
-The goal with these is to fully exit on a pre-earnings rally, waiting until Aug 7 will cause too much theta decay
9/20 24$ calls
-These allow me to continue potential intrinsic value with the lower strike, less theta decay and more chance to capture rising implied volatility
7/19 and 7/26 22$ cash secured puts
-Since I am so bullish on small caps and hood is so popular I went for high delta premiums, I am fine with getting assigned here but my entries were so good I will likely capture most of the premium on these
The Setup (I noted that hood was the slowest to move for my option watchlist last Friday, so I took advantage)
2026 18$ LEAPs for continuous exposure to price action
-These will allow me to sell low delta covered-calls if earnings pumps the price, or I can simply hold these for capital appreciation
8/16 25$ calls (riskiest part of trade)
-These are a cheap way to lever my bet but I have to watch for the 21 theta decay ramp
-The goal with these is to fully exit on a pre-earnings rally, waiting until Aug 7 will cause too much theta decay
9/20 24$ calls
-These allow me to continue potential intrinsic value with the lower strike, less theta decay and more chance to capture rising implied volatility
7/19 and 7/26 22$ cash secured puts
-Since I am so bullish on small caps and hood is so popular I went for high delta premiums, I am fine with getting assigned here but my entries were so good I will likely capture most of the premium on these
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.