Could you explain what you think will happen and what final position you are trying to get into before the event?
Earnings journal
- Thread starter TheBigShort
- Start date
Looks like no gap on PSMT. Well done guys. Vol should drop to 33-38 range in the morning.
I am betting upside surprise, but price action doesn't give me the confidence. I don't mind owning the stock for the long term, hence the put selling. May sell more prior to earnings.
I am not much of a price action guy, but on my screen TWTR hasn't had a down day in the past 10 days. Could you elaborate on what type of price action would help you confirm the positive surprise?
Wow PSMT. I was giving it some time for spreads to narrow, but it ran all the way past 64 right out the gate. Finally legged out for 4.0. Expected to make a lot more on this after yesterday's post-earnings move. Terrible liquidity on this one, both on the stock and the options. I guess that's how they get away with reporting sales before the earnings call!
Yea I got a slightly worse fill. It looks like 10 60 straddles were bought for under $3 before 9.45. I think the best way to trade these it to put a limit order in right in the morning (if there is no gap like in PSMT). We should have made +$1.5 on this trade! But yea, horrendous liquidity
Similar thing happened to me on YY back in March. It appeared to open with a ~0% gap, and within seconds it was pumped up 10%+.
Only 2 companies on my screen FAST and APOG. I have no opinion on them. Does anyone have any insight?
The trade was there for the first 20 minutes (I was busy this morning). I wonder if Neww got a good fill. But the stock really only traded above 62.5 after 9:50. Thats unfortuante on the YY trade. Limit orders before the open!
Last year I sold a straddle @ 19 on BBBY, stock opened at $13. Good Luck with this one bud!