Question for Options experts - how would you trade this scenario?

Bum said:
His losses are capped.
He's short calls & puts but also long calls & puts to limit the loss.
His credit per condor is $415 so each condor has a risk of $85.
$85x3=$255 plus commissions = max. loss
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I'll make a slight correction to my post.
Trader mentioned his max loss is $350.
That's because he didn't collect the same premium from both the call spread & put spread so my calculation would only be correct if the premium collected would have been the same.
Either way though, losses are capped.
 
taowave said:
Exactly...Somr of you are over complicating this..He took a cheap shot. Only problem I see is the spreads are really wide.

Can the stock be borrowed?

Doubt the 210's get assigned,but it's always good to know


.
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With the amount of volatility in this stock, I doubt the option would get exercised prior to the last day or 2 before expiration unless the price really runs away from the strike price.
Either way, I'd close if I saw the premium drop too low rather than get assigned.
 
EXCELLENT, but do consider an exit in the morning. Does BYND have a beta yet? What if the FED doesn't cut rates? "Bang!" Right in the chops.


("That was a pun there, right at the end, right?" Sho' nuf. Sho' nuf said.)
 
Nows the hard part.at this very nanosecond,it's sitting at your sweet spot and some vol shoild come out..

Are you going to let the chips fall where they may,or are you going to take partial profits if by some miracle it trades at 2-2.5 tomorrow?

Ild peel one off and play with the houses money..


SteveM said:
Well, $BYND is back down to $199 from $237 last Friday after reporting earnings just now.....just need her to close between $186 and $212 on Aug 3rd.
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You arent seriously putting BETA and BYND in the same sentence


tommcginnis said:
EXCELLENT, but do consider an exit in the morning. Does BYND have a beta yet? What if the FED doesn't cut rates? "Bang!" Right in the chops.


("That was a pun there, right at the end, right?" Sho' nuf. Sho' nuf said.)
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taowave said:
Are you going to let the chips fall where they may,or are you going to take partial profits if by some miracle it trades at 2-2.5 tomorrow?

Ild peel one off and play with the houses money..
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Yeah, I closed the entire position today at $2.50
 
Cant blame you on that one....
As long as you know that you really werent risking .85 to make 4.15...
You were risking .85 to make 1.65..
Would you have stopped yourself out at a predetermined price?
 
taowave said:
Would you have stopped yourself out at a predetermined price?
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Probably not....decided to exit because I heard BYND is going to announce a secondary offering any day now, and who knows how that announcement will affect the shareprice.

My gut tells me BYND will stay around $200 by Aug 3rd, but I'm not going to be greedy.
 
SteveM said:
Probably not....decided to exit because I heard BYND is going to announce a secondary offering any day now, and who knows how that announcement will affect the shareprice.

My gut tells me BYND will stay around $200 by Aug 3rd, but I'm not going to be greedy.
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Great call! You knew what you were doing.
 
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