u/ThetaFarmingRegard

Software stocks are down significantly YTD, bearish sentiment is pervasive, and expectations have been reset ahead of earnings. The author expects a "slow grind-up" and IV expansion into APP's earnings around 5/8, positioning with shares, a short call, and a long call for the run-up. A play for a 15%+ move higher into earnings via a complex options/stock position. Earnings disappoint; guidance fails to improve; sector sell-off continues despite "sandbagged" expectations.

ServiceNow (NOW) stock is held at $93/share, and the author has sold a put with an $80 strike. The cash-secured put strategy allows the author to buy more stock at a lower price ($80) if it dumps or keep the premium if it rips, expressing a bullish but cautious view. A bullish, income-oriented position that seeks to capitalize on stability or upside in NOW. Stock declines sharply below $80, forcing assignment at a higher cost basis than the market price; fundamental deterioration.