LD Lossdog Research
symbol

META

9 matching records.

Trade idea

META short premium

The speaker suggests that Meta could be an interesting short premium trade due to its low implied volatility (IVR of 29). However, the speaker also notes that there are better short premium opportunities in stocks with higher volatility, such as Micron and Nvidia. The speaker is not bullish on Meta and believes that the market may experience a healthy sell-off, which could be beneficial for short positions.

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Strategyshort premium
Assetstock
Time horizonShort-term, with the speaker indicating that the trade is not long-term.
Entry / triggerMarket has digested recent news and volatility is low.
Target / exitUncertain, but the speaker suggests it could be an interesting trade.
Invalidation / stopIf the stock continues to rise or volatility increases significantly.
SpeakerTom
Risks
  • Market could move against the short position if volatility increases or if the stock continues to rise.
  • The speaker's personal dislike for Meta's market behavior may influence the trade decision.
shortEquityshortshort premiumMETA
medium confidenceVerify in video at 23:52 ↗
Trade idea

Meta fade the move

The speaker suggests that in a choppy market, one can fade every move. For example, if a stock like Meta moves down 18% in a day, it could be a candidate for a defined risk trade to fade the move to the upside. Alternatively, if the stock continues to move in the same direction, it may be a sign of a larger trend.

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Strategyfade the move
Assetstock
Time horizonshort-term
Entry / triggerstock has moved significantly in one direction
Target / exitfade the move to the upside or downside
Invalidation / stopif the stock continues to move in the same direction without reversal
Speakerspeaker
Structure / legs
  • call spread
  • defined risk trade
Risks
  • Market can reverse quickly
  • Liquidity issues in the options market
  • Volatility can increase the cost of the trade
short-termEquityMETAshort-term
medium confidenceVerify in video at 20:14 ↗
Trade idea

META strangles

The speaker sold strangles in Meta and the chip stock ETF SMH due to their belief that implied volatility was excessively high, indicating overpriced options. The reasoning is that high IVR may reflect speculative behavior rather than true risk, creating an opportunity to short the volatility. The trade was based on the assumption that the market was inflating volatility, not reflecting actual risk. The speaker emphasized that this approach is mechanical and relies on IVR as a key indicator.

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Strategystrangles
Assetequity
Time horizonshort-term
Entry / triggerIVR at 100, which is the highest over the last year for Meta
Invalidation / stopIf IVR drops significantly or if the market shows signs of genuine risk increase
SpeakerThe speaker
Structure / legs
  • put
  • call
Risks
  • Market may not be mispricing risk, leading to potential losses if volatility is justified by fundamentals
  • Volatility could spike further, increasing the risk of losses
shortequityshortStrangleMETAshort-term
medium confidenceVerify in video at 19:36 ↗
Trade idea

META naked strangle

The speaker anticipated that the IVR for Meta would be excessively high due to earnings anticipation. By selling strangles, the trader aimed to profit from the expected normalization of volatility post-earnings. The strategy involved selling strangles with strikes that were likely out of the money, with the expectation that the IVR would decrease, allowing the position to profit from the decline in premium. The risk was limited to the premium paid, and the trade was intended to be held through the earnings event.

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Strategynaked strangle
Assetequity
Time horizonEarnings event
Entry / triggerHigh IVR ahead of earnings
Target / exitIVR normalization between 60 and 70
Invalidation / stopIf IVR does not decline as expected
SpeakerTom
Risks
  • Earnings surprises could impact stock price movement
  • Volatility may not decline as expected
  • Market liquidity issues
short volatilityequityMETA
medium confidenceVerify in video at 1:13:48 ↗
Trade idea

META strangles

The speaker proposed selling strangles on Meta (META) due to the high IVR, expecting a volatility drop post-earnings. The trade was based on the assumption that the high IVR would decrease, allowing for profit. The speaker emphasized closing the trade if the IVR dropped significantly or if the underlying assumption (e.g., volatility) changed. The trade was considered risky if the position became too capital-intensive, and the speaker suggested reducing the size or rolling the position if necessary.

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Strategystrangles
Assetequity
Time horizonshort-term (around earnings event)
Entry / triggerhigh IVR (Implied Volatility Ratio) due to earnings
Target / exitIVR drops significantly or underlying assumption changes
Invalidation / stopposition too capital intensive or deemed too risky
SpeakerTom
Risks
  • IVR does not drop significantly
  • underlying assumption changes
  • position becomes too capital-intensive
shortequityshortStrangleMETA
high confidenceVerify in video at 1:14:20 ↗
Trade idea

META strangle

The speaker is short a skewed strangle on oil, expecting a $10 or $15 drop before a $10 rise. The trade is based on the belief that the market is long oil, and the speaker is taking a short position to capitalize on potential downside. The trade is considered low risk due to the skewed strangle structure, which limits upside risk while capturing potential downside.

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Strategystrangle
Assetequity
Time horizonShort-term
Entry / triggerMarket opens
Target / exitOil price drops $10 or $15
Invalidation / stopIf oil price rises $10
SpeakerSpeaker
Structure / legs
  • short calls with twice the delta of puts
Risks
  • Oil price rises unexpectedly
  • Volatility decreases, reducing the effectiveness of the strangle
shortequityshortstrangleMETAshort-term
medium confidenceVerify in video at 15:27 ↗
Trade idea

META strangle

The speaker suggests selling a strangle on Meta (META) with a strike range of 500 puts and 950 calls, based on an IVR of 113 and an expected move of $95. The trade is considered high-risk due to the high IVR and the potential for significant price movement. The speaker acknowledges the trade's volatility and suggests adjusting the strikes slightly and considering an iron condor if the trade is not desired. The trade is presented as a non-directional play, relying on the volatility and expected price movement.

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Strategystrangle
Assetstock
ExpirationAugust
Time horizonShort-term, with adjustment after the show
Entry / triggerIVR of 113 and expected move of $95
Target / exitProfit from the strangle at $6.10
Invalidation / stopIf IVR drops significantly or the stock moves outside the expected range
SpeakerTom
Structure / legs
  • 500 puts
  • 950 calls
Risks
  • High IVR and volatility
  • Potential for significant price movement
  • Risk of assignment if the stock moves below the strike price
shortEquityshortstrangleMETA
high confidenceVerify in video at 40:10 ↗
Q&A

What are the two stocks that closed their IPO at a valuation of over $100 billion?

The two stocks are Alibaba (BABA) and Meta (formerly Facebook).

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Actionable takeawayThis is a piece of market trivia that highlights the significance of high-valuation IPOs.
BABAMETAIPOs
high confidenceVerify in video at 18:20 ↗
Q&A

What was your thinking behind the trades on Meta and Microsoft before their earnings?

The speaker discussed placing trades on Meta and Microsoft ahead of their earnings. For Microsoft, a broken wing butterfly was used to capitalize on volatility, while for Meta, a naked strangle was sold to profit from expected volatility normalization post-earnings.

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Actionable takeawayTraders can use volatility strategies like strangles and butterflies to profit from mispriced options ahead of earnings events.
METAMSFTearnings tradingvolatility management
high confidenceVerify in video at 1:12:54 ↗