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Options Trader
Basic Strategies for Big Profits in Any Market

Buy Call ONON

May 29, 2024
Buy the ON Holding (ONON) January 42.5 Calls (exp. 1/17/2025) for $6.40 or less.

As I noted yesterday in a Stocks on Watch, ONON was at the top of my watchlist following a strong earnings reaction, several Wall Street upgrades, and steady bullish option activity. This call buying is continuing today as the stock is breaking out to a new high, including this trade from this morning:

Buyer of 3,000 ON Holding (ONON) July 42.5 Calls for $2.20 – Stock at 42.

Let’s get involved via a January call buy.

To execute this trade you need to:

Buy to Open the ONON January 42.5 Calls

The most you can lose on this trade is the premium paid, or $675 per call purchased.

The risks I see in this trade are pretty straightforward …

There are some worrying signs under the surface of the market as many leading groups have been weakening.

Also, ONON and retail stocks in general have been on a strong run, and may be due to cool off.

That being said, I really like the way ONON stock has been trading, as well as the bullish option activity, and I am going to add the stock to the portfolio today.

PositionONON January 42.5 Call
Position StrategyBuy Call
Opened DateMay 29, 2024
ExpirationJanuary 17, 2025
Net Price6.40
Strike42.5
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.