Dest's Everything Journal

[vanzandt]

when's the dip,señor???
now, imagine there is a concert..a piano concert..big audience..all of a sudden some other guy,out of the blue, steps in with a guitar! uninvited! not only is the guitar out of tune but also the guy can't play!
that's you, señor )

6:32 Amigo

 

[maximumpossiblesuffering]

Do you mean 36/41/43.5 (symmetrical), or the asym 36/41/44?

Ah, I understand now. it is a 1 x 3 x 2 trade.

 

[destriero]

Yeah, it's a 132 in calls.

GOOGL "put" skew is substantial. 300bp P/C in the JUN7 series at the 25D RR.

 

[maximumpossiblesuffering]

If I am understanding your trade idea correctly, One could sell the relatively expensive 1092.5 puts, buy the relatively cheaper 1142.5 calls, and short GOOGL for a positive expectation trade?

 

[destriero]

If I am understanding your trade idea correctly, One could sell the relatively expensive 1092.5 puts, buy the relatively cheaper 1142.5 calls, and short GOOGL for a positive expectation trade?

That's simply the 1092/1142 synthetic long put spread (bear vertical) at edge. You cannot buy the box (long call spread against the synthetic long put spread) at edge due to the no-arb condition. So no, I wouldn't do your trade unless you're expressly bearish GOOGL.

I'd trade something heavy in short 1080-1090P.

 

[VixTraderdf]

uber trade looking good. nice one.

 

[Magic]

Yeah, that release was just about the best case scenario for the trade. I felt good reading that right after close. Hurray for the team!!

Dest, for post-earnings stuff do you try to exit right after things settle following the open, or try to ride out some of the residual vol as well when price is in a good spot like this?

 

[TheBigShort]

Do I see a pin?????!!! Nice trade Des.

 

[VixTraderdf]

Yeah, that release was just about the best case scenario for the trade. I felt good reading that right after close. Hurray for the team!!

Dest, for post-earnings stuff do you try to exit right after things settle following the open, or try to ride out some of the residual vol as well when price is in a good spot like this?

Go Team!

 

[maximumpossiblesuffering]

Have VZ or your GF put the trade on for you, no offense but order execution isn’t one of your strong suits.