July 12, 2024
Sell Half of your ONON January 42.5 Calls.
The market is flying higher, and unfortunately, ONON has been a mess along with its consumer-related peers for the last month. Let’s sell half of ONON so that we can raise cash ahead of a busy earnings season, which will surely bring better opportunities.
To execute this trade you need to:
Sell to Close Half of ONON January 42.5 Calls
Please note, it’s very possible these stocks will get back in gear. That being said, earnings season will almost surely spark new stock stars, and I want to have capital ready to add those new stocks to the portfolio.
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.
| Position | ONON January 42.5 Call |
| Position Strategy | Buy Call |
| Opened Date | May 29, 2024 |
| Expiration | January 17, 2025 |
| Net Price | 6.40 |
| Strike | 42.5 |
