Make that 3.15 risk!
Just bot AAPL DD
- Thread starter Eliot Hosewater
- Start date
Make that 3.15 risk!
You scared me for a minute. I thought I had overlooked an extra $5 risk.
The earns look pretty good so far, maybe it was already priced in.
LOL, sorry for the scare.
Actually, with the movement so far (+9) you might do quite well. I didn't read the statement with fine print, but I don't think they issued guidance yet, did they? CC at 2:00 PM Pacific, so let's see what they say. And the 3.15 would be absolute worst case scenario, with a big move taking the options to parity. It looks like you are safe there. Good luck!
AZD
I think that your going to have problems with this DD. There wasn't enough skew b/t Nov and Dec to make this attractive. Add slippage to that and you have small potential gain b/t short strikes. To each side of them (outside), it gets worse and then there's where IV settles as well as slippage.
Last quarter IV dropped into the high 30's. Previous quarters were even lower. The only offset will be if they don't take the IV down quickly in the AM. Watch your prices carefully at the open.
I don't know what works for others but with positions with multiple legs, I write a spreadsheet and only have to plug in the respective prices when trading opens. If the market is fast, you don't want to be trying to work it out with a pencil
Good luck!
Last quarter IV dropped into the high 30's. Previous quarters were even lower. The only offset will be if they don't take the IV down quickly in the AM. Watch your prices carefully at the open.
I don't know what works for others but with positions with multiple legs, I write a spreadsheet and only have to plug in the respective prices when trading opens. If the market is fast, you don't want to be trying to work it out with a pencil
Good luck!
I sold the 175 straddle at 19.30 right before earnings report looking for some IV collapse. I think it was at 52% ATM near the close and looking for a drop o perhaps 48/47% and at worst 10 points above strike move higher. Riskier way to play it no doubt but we will see Tues morning how it opens.
Some of it was. There was some heavy buying supporting it last week during the market tumble.
Will be interesting to see how it performs tomorrow. Wouldn't be surprised to see it gap and then some profit taking.
Covered straddle at $16.15, I just wanted to profit from the IV drop, from 54% to 41% in NOV straddles.
Great example of knowing how volatility works. Stock gapped from 174 to 187 and the 175 straddle went from 19.30 to 16.15 when I covered at 9:41 AM. VOl crush.
People who bought the straddle expecting a big move, got the move but still lost money, purely on volatility.