Selling Calls on ALAB — How I Bring in Income While I Wait

Let me walk you through a trade I'm looking at right now — selling a call on Astera Labs (ALAB). This is a great example of reading the chart, identifying your levels, and making a plan before you ever place the trade.

First, the chart. This is the 4-hour IADSS chart. We had major resistance at the $190 level and support at $140. The stock tested $140 here, here, here, and here — and then finally broke through. Once it broke down, that old support at $140 became new resistance. That's the rule: when something bounces off a level and then breaks through, it tests that level from the other side.

Right now, ALAB is testing that $140 resistance from below. Yesterday it failed. Today it's still struggling. I don't have a crystal ball, but I do see a lot of overhead resistance — and if $140 doesn't hold, the next resistance level is the 200 moving average around $150.

So what could I do here to bring in income?

Let's say my original entry was a put I sold that got assigned, and I own the stock at a cost basis of $125. Right now I can sell a call against it.

Do I have my ideal positive +2 mean reversion yet? No. But what I do have is defined overhead resistance at $140 and more resistance at $150. If I'm okay getting called away at $140, I can sell a call now and bring in income to lower my cost basis.

Here's what I looked at in thinkorswim: