BIDU earnings

Gangof4,

If you expected a big move in BIDU, why not sell a horizontal spread instead of buying a straddle?
Buy Mar 115, sell June 115, for a credit of $5.20.
This way you still make money from IV crush.
Scriabinop, looks like it would have been a good trade even for you, as it should still make some money at $115 if I am right, and risk would have been very low.
 
BIDU is going to open around $102. Would be interesting to know how you guys both did and how bad the volatility crush was. I would like to compare results with selling a calendar spread.
 
Quote from candeo:

BIDU is going to open around $102. Would be interesting to know how you guys both did and how bad the volatility crush was. I would like to compare results with selling a calendar spread.
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Sticking to the dream plan now.. covering the calls ... then hope for either an extreme move down (remember i hedged with extra strangles) or a move back to 115 to cover the puts.
 
Quote from candeo:

It would be great if you could post P/L of whole position at opening, so we can double-check yesterday's projections.
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I also sold 120 mar/bot 120 feb. that made me 1k. That spread works much better on a drop than up (i netted breakeven on ntri).

I am in maximum loss right now, $250/spread (did 25).

Keeping the hedges on, and hoping for a return up.
 

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Quote from scriabinop23:

I also sold 120 mar/bot 120 feb. that made me 1k. That spread works much better on a drop than up (i netted breakeven on ntri).

I am in maximum loss right now, $250/spread (did 25).

Keeping the hedges on, and hoping for a return up.
More...

by way .. plan here to divert pin risk if I don't get beneficial move today: switch half short puts for long Mar 105 calls.
 
Thanks for sharing. Will analyze all this later today. I am up $1,200 on the 20 spread on NTRI (Mar/June). Does not look like IV dropped that much. It is now 55% on the Mar's and 48% on the Jun's. Yesterday it was 65% and 54%.
The Feb's $45 were 119% and now 83%.
 
Quote from candeo:

Thanks for sharing. Will analyze all this later today. I am up $1,200 on the 20 spread on NTRI (Mar/June). Does not look like IV dropped that much. It is now 55% on the Mar's and 48% on the Jun's. Yesterday it was 65% and 54%.
The Feb's $45 were 119% and now 83%.
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i know i see. my feb/mar spreads were profitable and my Mar/Jun 50s were no good.

They either need to be VERY in the money on the upside, or do better easily in a stock drop.

Nice tool, though.

But it looks like the Feb/Mar doesn't suffer too much from the theta decline so close to expiration. Good to know. I did 10 45/45s and 2 50/50s.
 

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