TBO - DELL SMH Update 8-12

8-12

DELL put spread into ~0.52.

SMH put spread into ~0.60.

Consider DELL sell 21AUG 380-510 IC

DELL

Buy 370 Put
Sell 380 Put
Sell 510 Call
Buy 520 Call

Minimum $1.90 with mid around $2.00

Technicals: Straddle is $45.75(IV Move on TOS is $46.76 ) and strikes are $61 to the downside and $69 to the upside. The Average True Range is $33.93

Risk: The total risk of the trade is defined by the distance between your long and short strike of your spread ($10) minus the amount of money that you sold the Iron Condor for.  For this spread we are getting around $2.00 so our risk is $8.00

Reward: Our reward will be maxed out if the stock stays between our two short strikes and will be equal to the amount you sold the condor for.  Maximum reward would be $2.00

Adjustments: Our upside morph will be executed only when the stock has broken up above our upside resistance line and commences a technical breakout. Our downside morph will be executed only when the stock has broken down below our downside support line and commences a technical breakdown.

***Trade Management: For those wanting to reduce their risk sooner, these levels can be used as breakouts for an early morph:

Upside early morph levels that can be considered: $485.7(8/5 H)  with the stock moving higher

Downside early morph levels that can be considered : $405.37(7/31 Low) with the stock moving lower

7/14 SCS IDEAS for expiration 24JUL, 2026

Idea #1:

BEARISH– Selling CALL Vertical

GS $574

Consider selling the GS 21AUG 1100-1110 CALL spread for roughly $1.3(min $1.00) with stock BELOW $1038 (current $1036)

Consider GS 21AUG 1100-1110 CS

Risk: $10 vertical spread less premium collected of spread of $1.25 = $8.75 of risk

Max reward is $1.25

ATR: $32.73

Straddle: $50.25

Morph levels: Stock ABOVE $1088.5 (7/27 High) consider making an adjustment with market that is moving HIGHER!

Ideas #2

BULLISH– Selling PUT Vertical

SMH $574
Consider selling the SMH 21AUG 535-525 PUT spread for roughly $1.15(min $0.90) with stock ABOVE $572.5 (current $574)

Consider SMH 21AUG 535-525 PS

Risk: $10 vertical spread less premium collected of spread of $1.15 = $8.85 of risk

Max reward is $1.15

ATR: $24.1

Straddle: $31.4

Morph levels: Stock BELOW $539.28(100 SMA) consider making an adjustment with market that is moving LOWER!