Power Plays Options
New Idea: MSOS Calls
Update: GOOGL Calls
February 5, 2025
By Scott Redler
I'm adding this position in AdvisorShares Pure US Cannabis ETF (MSOS) for Power Plays Options:
- Long MSOS June 20 $4 calls
These calls look good in the $0.65 to $0.85 area (or lower).
The cannabis sector is notoriously tricky thanks to what feels like a nonstop series of disappointing legislative news.
However, 2-3 times a year, it gives vicious oversold bounces.
And after hitting a recent low of $3.27, one of those bounces may be happening right now.
As far as our GOOGL calls go, unfortunately, our last 1/3 will likely expire Friday worthless.
Thankfully, we took off 2/3 at higher prices which reduced the damage.
This is always a risk with options on binary events like earnings. And it's why I often try to take partial profits into events if something rallies faster-than-expected.
-Scott
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