Choosing Direction On Option Trades (Is It Wild Ass Guessing?!)

Hey Derek, by the way, before you go, you said um if you feel directional on some of these bank earnings trades, where where do you get your clues to direction, if any? Cuz I'm I'm always neutral on these companies cuz you you might think one way and they just go the absolute other.

Well, it would have to be logic. It would have to be something you follow all the time. Like if you don't if you not a company you follow all the time, you can't really have a much of an assumption. But like, for example, the tech stocks, you know, I I I mentioned AMD and Intel. You saw me close those

short calls earlier. Yeah. Just because I I hated that those trades. I I've been hating them for a while. Uh just Intel especially, Intel for the last few months just wants to go up. I mean, Yeah. why am I fighting that thing? I should have never sold the call. And I know it. I just get out of it.

AMD, it kind of made sense why I sold calls on AMD when I did, but still, the the extreme strength in AMD in the last 2 weeks, it's like, yeah, if I'm not careful, that thing could get ugly very quickly. Yeah. Yeah. Because I mean, it's what's that AMD trading at? Uh It's a high-priced stock, $243.

And the calls I'm selling were like 300, 310, something like that. You know, if those calls get breached, I'm probably staring at a, you know, four or five grand kind of loss on it. Well, you know, not a unrealized loss, but it's it's going to be a trade I'm going to fight for the next 6 months.

And at the, you know, I was at basically at break even this morning. Let me just close that trade. Yeah, today GS was obviously down, and that's the leading of the bank parade. Do you take that as any kind of indication? Um well, I mean, their earnings report was good. Yeah. Uh but you never know again,