This morning I am taking a look at starting a position in $MXL. I am unsure if I will start a position before earnings on August 8th. Also unsure if I will go with stock, options or a hybrid of both.
Let me show you my charts…
What a mess. I will clean it up for you.
The rectangle is my zone where I want to start a position. As we approach earnings, the Implied Volatility has started to creep up so it will be more expensive to buy premium here. I am inclined to start with a quarter position with stock.
Seasonality shows $MXL to be fairly strong in September, so depending upon how the stock reacts into earnings, I may take a long options position after the vol crush post August 8th.
The semiconductor Industry as a whole is nearing an oversold point as well, possibly ripe for a bounce.
For the reasons above as well as being an entitled millennial who feels the world owes him something, I will be taking a long position today.
I will update you how this plays out.
OC