Earnings trades

Quote from momoneythansens:

Bought or sold?

Long the wings, long theta, short vega, short gamma i.e. you want it to sit still and vols to collapse? If so, you must have sold the iron condor (for a credit).

Otherwise, if you bought the IC, what was your reasoning/sentiment?

Good luck either way.

MoMoney.
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bot the condor...bot wings sold call spread..sold put spread...

sold 90/95 call...sold the 75/72.5 put

sorry for the mixup
 
Quote from chiguy:

bot the condor...bot wings sold call spread..sold put spread...

sold 90/95 call...sold the 75/72.5 put

sorry for the mixup
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looks like a good trade for both of us so far...
 
Quote from IV_Trader:

sold Feb AAPL 72.5-95 strangle for 2.20 .
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closed AAPL for 1.30 , profit 90 cents per strangle
closed HTCH puts for 1.90 , profit 70 cents per combo
 
Quote from IV_Trader:

closed AAPL for 1.30 , profit 90 cents per strangle
closed HTCH puts for 1.90 , profit 70 cents per combo
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nice trade...time to let my position rot....

did a similar trade in ebay...got lucky and bought my short 47.5 call in for a nickle before they took off....whew...rather be lucky than smart any day...:eek:
 
I've run thru the pgs really quick and agree it should be in journals...quick 2 questions...how are you determining your ratio's of puts/calls? In general do you have an idea of when prior to earnings you will put the trade on? (is it iv dependent?) oh and #3 will you take both sides off after earnings or leg out? tia donna...Good luck

edit...one more question:p what determines whether it will be a combo or strangle..thx!:)
 
Quote from DonnaV:

I've run thru the pgs really quick and agree it should be in journals...quick 2 questions...how are you determining your ratio's of puts/calls? In general do you have an idea of when prior to earnings you will put the trade on? (is it iv dependent?) oh and #3 will you take both sides off after earnings or leg out? tia donna...Good luck

edit...one more question:p what determines whether it will be a combo or strangle..thx!:)
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iv...i'll let you answer this one....

i am completely unscientific as to how i do these...

my ideas just come from staring at screens forever....
 
Quote from DonnaV:

I've run thru the pgs really quick and agree it should be in journals...quick 2 questions...how are you determining your ratio's of puts/calls? In general do you have an idea of when prior to earnings you will put the trade on? (is it iv dependent?) oh and #3 will you take both sides off after earnings or leg out? tia donna...Good luck

edit...one more question:p what determines whether it will be a combo or strangle..thx!:)
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hi Donna , the ratio is delta neutral , and I do adjustments while holding ( what I cannot do here).

I entering when future vega gains > theta loss , where the future vols is my estimate ( but pretty accurate).

unfortunately , its takes a lot of time to update posts , so I probably won't post anymore
 
Quote from IV_Trader:

bought FFIV (1/19)
Jan 55p=1.20
Jan 60c=1.60
ratio is 3:4
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sold put , 1.05
sold call , 2.35
profit 55c per combo

opened RC :

long Jan 60c (2.30)
short Feb 60c (3.80)
 
Quote from IV_Trader:

CVTX (paper trade only , too many unknown)

FDA hearing on 1/27 .
Feb vols at 85 , but at previous FDA event vols reached 120.

Buy CVTX (24.70)
Sell Jan 25c (0.45)
Buy Feb 25p(2.85)

At Jan exp close the cover call and buy FEB 25c .
Hopefully in the next four days stock won't move (stock is trading water for the last month in anticipation of big news) and FEB vols will continue to go up.
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closed at exp , just as expected : no change in the price (kept the Jan premium) and FEB vols kept on rising.

http://www.ivolatility.com/options.j?ticker=CVTX:NASDAQ&R=1&period=6&chart=02&vct=4
 
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