“Why Your Options Lose Value After Earnings”
AI summary · LMT looks stretched after a post-earnings vertical rally and is expected to pull back sharply toward key support; it was rejected at a trendline near 645 and 650, RSI is overbought above 70, volume is fading, and today's put volume outweighs calls. The speaker is bearish and buying puts.
Before we get a little further into that, I'm looking at a setup from a couple weeks ago. One of the defense beasts, Lockheed Martin. Originally, we passed on it because the spread between us buying and us selling or excuse me, between the bid and the ask, it was too wide.
It was about 20% and that's wide for slippage. The strikes weren't liquid and the premiums were too expensive as a buyer.