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Buy Call PINS

February 8, 2023
Sell your Pinterest (PINS) March 25 Calls for $1.75 or more.

Yesterday PINS fell marginally following an “OK” earnings report. And while I don’t anticipate PINS stock falling apart in the days/weeks to come, I also think it’s somewhat unlikely that the stock is going to explode higher. For that reason, let’s sell the second half of our calls, and prepare to move this cash into better ideas.

To execute this trade you need to:
Sell to Close the PINS March 25 Call

We took a shot at holding half of our PINS calls through earnings, as I thought the downside was somewhat limited, and the upside could be explosive. That proved to be the wrong choice, and we are simply going to move on.

February 2, 2023
Sell Half of Existing Position: Sell Half of your Pinterest (PINS) March 25 Calls for $4.95 or more.

After many months of choppy action, PINS has finally broken out ahead of earnings early next week. And while our profits aren’t a home run at this point (approximately 15%), because of the big earnings risk, let’s sell half of the position today.

To execute this trade you need to:
Sell to Close Half of your PINS March 25 Calls

We will evaluate where we stand with the balance of our PINS position early next week ahead of the earnings announcement.

October 18, 2022
Fill Out PINS Half Position: Buy the Second Half of the Pinterest (PINS) March 25 Calls for $4.10 or less.

The market is improving … maybe … possibly. And because of that, and the non-stop call buying in PINS, I am going to fill out my original half position in the March 25 calls.

For example, if I typically buy 10 calls, and only bought 5 two weeks ago when we bought a half position, today I am going to buy another 5 calls to make this a full position.

To execute this trade you need to:
Buy to Open PINS March 25 Calls

The risks I see in filling out this position are the typical market risks which are many as the indexes are barely above the lows, as well as Pinterest’s earnings announcement in two weeks.

Assuming we get filled at $4.10 or better today, our net cost basis on our PINS position will be $4.40 (approximately).

October 4, 2022
Buy Half a Position: Buy the Pinterest (PINS) March 25 Call (exp. 3/17/2023) for $5.25 or less.
The market soared higher yesterday and is up big again today. This is very intriguing strength to start the fourth quarter. And while it’s possible this is ANOTHER bear market rally that will soon fail, I am going to take a stab with a half position in Pinterest (PINS), which has held up spectacularly, has attracted a ton of call buying activity, and perhaps the market is on the verge of finally getting back in gear.

To execute this trade you need to:
Buy to Open the PINS March 25 Call

The most you can lose on this trade is $525 per call purchased.

The risks I see in this trade are general market risk (big risk) as well as earnings (big risk), which will be released in early November. Those risks are why we are buying a half position today.

Finally, to recap, here is a small sample of the call buying activity I have noted in recent weeks:

Buyer of 4,000 Pinterest (PINS) October 27.5 Calls for $0.57 – Stock at 22.5

Buyer of 2,000 Pinterest (PINS) March 35 Calls for $2 – Stock at 25

Buyer of 5,000 Pinterest (PINS) October 30 Calls for $0.83 – Stock at 25

Buyer of 3,500 Pinterest (PINS) November 27.5 Calls for $2.76 – Stock at 25.5.

PositionPINS March 25 Call
Position StrategyBuy Call
Opened DateOctober 4, 2022
ExpirationMarch 17, 2023
Net Price4.70
Jacob Mintz is a professional options trader and editor of Cabot Options Trader. Using his proprietary options scans, Jacob creates and manages positions in equities based on unusual option activity and risk/reward.