The markets had another down week with the DOW30, S&P500, and NASDAQ ending -0.15%, -0.85%, and -2.5%, respectively.
Earnings 📰
Disney
Despite the Disney's revenues rising by 3.8% to $22.33 billion, they fell short of the consensus estimate by 0.48%. Following the announcement, Disney shares rose approximately 4.75%. CEO Bob Iger emphasized the company's focus on cost-cutting and innovation, while also mentioning an upcoming price hike for their streaming services Disney+ and Hulu. As of July 1, 2023, Disney+ had 146.1 million paid subscribers, a decrease from 157.8 million on April 1, 2023. On the other hand, Hulu, another Disney service, concluded the quarter with 48.3 million subscribers, a slight increase from the 48.2 million in the prior quarter.
I'm planning on exiting my DIS positions that I've held for a while. I believe there's too much saturation with the streaming industry and people are generally not happy with their content. Institutions also have not been favoring the company, keeping the stock price at around $100.
I'm planning on selling a covered call at around the $100 strike and letting my shares go.
Steve's Trades
AMZN
There seems to be resistance around the $138 and $145 levels, however AMZN could continue to drift downwards or neutral to fill in the gap before it decides to back above $145.
AMZN Bear Call Spread
Expiration Date: September 22, 2023
Step 1: Buy 1 $180 strike call option (delta 0.01) for $6
Step 2: Sell 1 $150 strike call option (delta 0.22) for $150
Step 3: Set a buy-stop order of 100 shares at $149
Credit/premium received: $144
Volatility has died down after these recent earnings, so there isn't much premium to collect.
We will let theta eat away for this play, since there's significantly fewer transactions going through at the moment. If you have bear call spreads from previous weeks, and they have generated around 50%+ profit, you can consider closing out those positions and locking in your gains.
Again, I haven't been buying anymore shares for my long-term holds. I'm keeping a close eye on the markets to see which companies institutions will be favoring now that all the earnings reports have been released.
I've also been selling more covered calls against my other wheels at around the cost basis of my shares. And just as a premium boost, I also sold some covered calls against some of my long-term holds at around the delta 0.5 strikes.
I'm keeping all my premiums, dividends, and deposits as cash right now. Remember, investing and trading is a marathon, not a sprint.
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