GOOG earnings long straddle?

"Reward:Risk ratio = 1:11"
That's 8.6% for 14 days or, put differently, approx 0.6% per day or approx 223% per annum at forex-forex assumed fill - not bad at all. If fill better than that then obviously return will be better.
daddy's boy
 
Quote from daddy'sboy:

"Reward:Risk ratio = 1:11"
That's 8.6% for 14 days or, put differently, approx 0.6% per day or approx 223% per annum at forex-forex assumed fill - not bad at all. If fill better than that then obviously return will be better.
daddy's boy
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Since jllm03 didn't give details then fills have to be assumed based on quotes from another source, such as Yahoo finance. Also a reward:risk ratio of 1:11 isn't all that good, 1 trade in 11 will put you back to square one.
 
Quote from damon_achey:

Ever think he might have gotten a better price than the current EOD one? Like when GOOG was up a little this morning?
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The legs must have been entered at different times then. The short leg in the morning and long leg in the afternoon.

But jllm03 didn't give details except to call it a "Call Credit Spread" so I go by Yahoo quotes. Looks like both the 370 and 360 calls moved in tandem today or within $0.05.
 
forex-forex wrote: "Also a reward:risk ratio of 1:11 isn't all that good, 1 trade in 11 will put you back to square one."
That's assuming he holds all positions to expiry and just sits on his arse doing nothing.
I'm assuming he has some skills in money and trade management.
daddy's boy
 
When I entered the spread before noon Friday, GOPGL (460c) was @ 3.0.
GOPGG (470c) was@ 1.6 for 10 contracts each.
I received $2965 credit for the 460 and paid out $1600 for the 470.
If it stays below 460....I am happy...I get to keep the Credit.
If it gets near 460, that will be close to my breakeven point, and I will buy it back.
I love to do my spreads on a Fridays with only 1 or 2 weeks left...Time decay is my Best Friend...:)
 
Ah, even better. Risking $8.60 to make $1.40, iow return of ~16% over 14 days. I noticed the short call has a delta of 0.13 and thus a probability of expiring otm of ~87% - the odds are in your favour.
Nice.
daddy's boy
 
Quote from daddy'sboy:

I get 7/20 for earnings (optionsxpress site).
daddy's boy
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nothing on Yahoo ; Earnings.com shows 17-27 and July/AUG vols definetly shows as unknown date.
Good luck all
 
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