ISRG earnings play

[atticus]

Quote from atticus:

I model/trade event volatility for a living. 35 point otm will be 1.50 or lower for August calls by tomorrow-close. I expect some down and out skew, so the puts (35-40 otm) may be slightly bid compared to the equidistant otm calls (dime or so).

32 point otm (360C) call is 1.00 x 1.30 offer with the stock up 2. 31% vol on the calls, 40% vol on the puts, so the skew appeared.

 

[kinggyppo]

Here is a visual, even though the stock went up a bit the vols collapsed. This is the kind of shit option seminars should be about, instead of teaching a noob iron condors. just my .000002

 

[darwin666]

thats it.. I did close my 10 calls of 400 strike.. for 5 and 10 cents avg... that freed up... almost 30K in margin in my IB account.

now if u notice... ISRG is rearing its head and fighting upwards.. but I am not biting... there is too much time to Aug expiration..hence stay on the sidelines. will revisit 7 business days from august expiration.

 

[atticus]

Short 339.24. Stop at 348.

I'll convert to a vol position if I see significant gains.

 

[atticus]

Quote from atticus:

Short 339.24. Stop at 348.

I'll convert to a vol position if I see significant gains.

Bought 335.57 to close.

 

[donnap]

Quote from atticus:

Bought 335.57 to close.

Good going. I was wondering if you held overnight.

I've still got my earnings trade - trying to glean a little more - but the option liqudity is gone. Typical of a stock like this.