INTC trade

E

EliteTraderNYC

What you guys think of this?

sell INTC call oct 15 32.00 for .75
buy INTC call nov 6 32.00 for .99
sell INTC put oct 15 32.00 for .65
buy INTC put nov 6 32.00 for 1.03
 
why do you have a put and a call calendar? Why not pick one of the two? Commission for entering and exiting those strikes will eat into the potential profit earned? Also, INTC has been on a rally for 10 out of 13 sessions. If it's earnings report turns out to be poor, you could see INTC's underlying price retrace and put your spread in jeopardy.
 
  • INTC: $32.21
  • Earnings: Tuesday October 13
  • Total debit: $0.62
  • INTC target price by November 06: Greater than $32.62 OR less than $31.38


Looks OK to me.



:)
 
Screen Shot 10-12-15 at 06.59 PM.PNG
Screen Shot 10-12-15 at 07.00 PM.PNG
Screen Shot 10-12-15 at 07.00 PM 001.PNG
 
The Nov strikes have almost 3x the Vega, but won't lose as much IV. It seems like the edge, if any, is tiny here and likely to be eaten up by commissions and B/A.
 
EliteTraderNYC said:
What you guys think of this?

sell INTC call oct 15 32.00 for .75
buy INTC call nov 6 32.00 for .99
sell INTC put oct 15 32.00 for .65
buy INTC put nov 6 32.00 for 1.03
More...


The same-strike put and call calendars are equivalent. So you're simply doubling-up on lots. It's a two-lot call or put calendar equivalent. They look good until INTC moves 10% on the news. INTC vol is >50%, but you're only receiving 1.40 credit for the straddle.

You're looking at a 31 to 33 break-even if you assume a loss of only 6 on the Nov6 vol-line. It's not terrible, but there is very little upside. Maybe $30 per contract near the close on Friday, assuming INTC is trading $32.
 
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