Earnings: IC vs Short Strangle
- Thread starter dbh21
- Start date
Thanks. AAPL I believe was a 2x return, BIDU 1.5x return, and this VVUS call looks like another one of my home runs. Could be 5x or more.
http://www.elitetrader.com/vb/showthread.php?s=&postid=3453127#post3453127
This result reminds me that in one of Larry McMillans' books, he mentions that in his experience (I don't think he gave any specific data or anything), buying straddles for earnings was generally a losing proposition - however buying straddles for FDA announcements generally was a winning idea.
I guess this is an example of that. Also, earnings tonight from ADI, FLS, and HPQ all seem to have just caused minor downward moves in the after hours so far, most likely resulting in losses for straddle buyers of those stocks when the market opens tomorrow.
So the thought it well taken.
JJacksET4
I guess this is an example of that. Also, earnings tonight from ADI, FLS, and HPQ all seem to have just caused minor downward moves in the after hours so far, most likely resulting in losses for straddle buyers of those stocks when the market opens tomorrow.
So the thought it well taken.
JJacksET4
Quote from ForexForex:
Thanks. AAPL I believe was a 2x return, BIDU 1.5x return, and this VVUS call looks like another one of my home runs. Could be 5x or more.
You recommending the naked call guy hold his short to the tune of a loss >20x the premium... then BIDU long calls into earnings which lost 100%.
Quote from ForexForex:
Thanks. AAPL I believe was a 2x return, BIDU 1.5x return, and this VVUS call looks like another one of my home runs. Could be 5x or more.
Could you post some links to clarify what you are taking about. You quoted my post on Iron Condors and Short Strangles which is the topic of this thread, but now you seem to be drifting away and talking about Naked Calls and Long Calls.
Quote from ForexForex:
Could you post some links to clarify what you are taking about. You quoted my post on Iron Condors and Short Strangles which is the topic of this thread, but now you seem to be drifting away and talking about Naked Calls and Long Calls.
I bet you're confused.
100% loss of premium on BIDU:
http://www.elitetrader.com/vb/showthread.php?s=&postid=3450721&highlight=bidu+150#post3450721
The expert, forexforex, recommends letting those AAPL calls expire worthless:
http://www.elitetrader.com/vb/showthread.php?s=&postid=3427397&highlight=expire#post3427397
Don't forget the Google earnings call where he changed the trade from long calls to long puts at 4:15.
Yeah.
If you have questions on those trades post them in the respective threads. This thread is on Earnings: IC vs Short Strangle and the stock in question is VVUS. No need to hijack this thread.