Seeing 3 Ways to Go on Mobileye

Mobileye (MBLY) is set to report earnings next week. This has been a name I included in a discussion around autonomous vehicles and one I see as a name to own for the next 12 to 18 months and possibly beyond. The stock popped to start the week and now we're watching a bull flag form as we run into earnings. 

Normally, the challenge here is I would buy a move over $46 as a breakout. Earnings will likely deliver a pop to $50 or a retest of the low $40s. As a name I want to own, one approach here would be to use the inflated implied volatility of the near-term options (due to earnings) to sell a put. While it doesn't offer a ton of upside, one could garner 3.5% to 4.5% selling a near-the-money March put. On the flip side, one could define risk and shoot for the upside via a call or call spread. Or we could have a good time and do both. I'd prefer to lay out three approaches, which then permits a trader to tailor the situation to their comfort. ...275 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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