some decent credit on shorting the ATVI 80p/90c around $3. about 10 days out.
anyone like it or think its too risky.
anyone like it or think its too risky.
atvi short strangle?
- Thread starter klattermusen
- Start date
So you are looking at expiration date of April 28th? And you are looking to short a strangle? I don't do short strangles. They are too risky for my blood regardless of the strikes. You are looking at potentially unlimited downside risk. And they are estimated to report earnings on April 24, 2023. Maybe that's why the premiums are so high.
I've played a few of their games and I liked them. They have a large following for their games with international competitions and etc. So the company is solid. Their latest game Diablo IV is scheduled to be released on June 6, 2023. I am sure they are going to be talked about it in their guidance as Diablo is a major game. I don't follow their games anymore so I dunno how good this game is expected to be so I can't advise.
I've played a few of their games and I liked them. They have a large following for their games with international competitions and etc. So the company is solid. Their latest game Diablo IV is scheduled to be released on June 6, 2023. I am sure they are going to be talked about it in their guidance as Diablo is a major game. I don't follow their games anymore so I dunno how good this game is expected to be so I can't advise.
thanks
I figure earns is irrelevant since MSFT is in the throws of buying them for $95.
ps..I have May 1 for earns. https://www.earningswhispers.com/stocks/atvi
I thought about not replying because anyone who listens to @TheDawn likely doesn't understand how options work.
UK is issuing their anti-trust findings on the merger. If its very negative the stock craters to some level (not sure what). if it's very positive then stock rallies to some price < 95.
I believe they are releasing the findings on Apr 26th. The remedy's in the filing could impact how China and the US see the merger.
I just checked on their website and I didn't see any announcement of their earnings reporting date so that might still be an estimate. Lots of estimated reporting dates going around from many different sites. They all state the date is not yet confirmed by the company.
The market is expecting an earnings growth especially with the potential merger with MSFT. If they really have a super good earnings and if the merger with MSFT is really finalized then your short call leg is going to result in major losses if you close the short call position and you are going to be majorly short-squeezed if you get assigned. Remember when a stock goes up, the sky is the limit. It's not going to be good.
This is why I don't like short strangles, especially around earnings. It's major loss either way. If the earnings is bad, you suffer major losses on the short put and if the earning is good, then you get squeezed on the short call. Like I said, that's why the premiums are so high.
it’s not the earnings date. It’s the UK merger report.
so they are announcing next week as well? Prob given the UK report on the 26th.
maybe you are right. Will be interesting to see where the vol opens tomorrow.