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goog option plays for earnings week
- Thread starter iprph90
- Start date
Quote from atticus:
OTM? No such animal as an otm straddle. Long, short? Strike?
I get straddle/strangle mixed up if I don't have the definition in front of me. I was thinking of buying an October Strangle 2-3 strikes OTM based on GOOG's price as of October 18. Then close on the 19th, hold for just one day.
Quote from iprph90:
true..technically not a straddle, but with the strikes i'm considering are best described perhaps as a dd.
I quoted forex^2 in my reply. He mentioned an otm straddle, whatever that is. I wouldn't be long vega and short gamma here, especially with risk to your wing strikes. It's possible that GOOG will move 40+ on the report, but it's a certainty that Nov vols will open <27%. Oct vols won't matter if it opens outside your Oct strikes.
There is 600bp in upside skew at 15D. I would consider selling the 700C and getting neutral with spot. The overwrite earns up to 700 on shares.