Description:
Earnings after close, taking advantage of high IV on same week options and covering with next week's (Calendar Spread).
Long Call Calendar Spread
Levels on Chart
R/R ~4:1
Positive R/R, stop loss levels built into position.
Conveniently, Break-evens:
*Stops based off underlying stock price, not mark to market loss
The Trade
BUY
11/05 152.5C
SELL
10/29 152.5C
Position Addition:
Will be running a limited amount of capital in additional same week OTM long calls to position for additional upside.
These will be purchased at EOD.
My Position:
BUY
10/29 160C
*The amount I am buying of the OTM calls here is equivalent to ~15% of total position size.
Estimated Position Delta: .09
As you can see, my long long bias is negligible to the overall strategy.
I will update with my fill and delta when I open the additional long calls.
Earnings after close, taking advantage of high IV on same week options and covering with next week's (Calendar Spread).
Long Call Calendar Spread
Levels on Chart
R/R ~4:1
Positive R/R, stop loss levels built into position.
Conveniently, Break-evens:
- 158.99, (2 stdev from open)
- 146.33, (~80% of 1 stdev from open)
*Stops based off underlying stock price, not mark to market loss
The Trade
BUY
11/05 152.5C
SELL
10/29 152.5C
Position Addition:
Will be running a limited amount of capital in additional same week OTM long calls to position for additional upside.
These will be purchased at EOD.
My Position:
BUY
10/29 160C
*The amount I am buying of the OTM calls here is equivalent to ~15% of total position size.
Estimated Position Delta: .09
As you can see, my long long bias is negligible to the overall strategy.
I will update with my fill and delta when I open the additional long calls.
Trade active:
Calendar Spread filled at .56.
There was a brief point where it could have been filled at .35, for a 7:1 R/R and more attractive break-evens.
There was a brief point where it could have been filled at .35, for a 7:1 R/R and more attractive break-evens.
Trade active:
Filled the 10/29 160Cs at .21.
Total position delta is .2101 at close.
Investors did not like the earnings, but fortunately AAPL settled > 147, above our lower breakeven point for the calendar spread.
As for the 160C portion, it will just be closed out at a loss.
Total position delta is .2101 at close.
Investors did not like the earnings, but fortunately AAPL settled > 147, above our lower breakeven point for the calendar spread.
As for the 160C portion, it will just be closed out at a loss.
Trade closed: stop reached:
Closed calendars for .42, -24%.
Long calls will most likely have to expire worthless.
Long calls will most likely have to expire worthless.