Notes: Earnings announcement volatility contraction play with 30-day implied at 70.9%. Will look to take profit and/or manage on side approaching worthless/break even test ... .
For those wanting to play naked, the August 21st 150/205 short strangle was paying 7.03 as of the writing of this post.
Trade closed manually
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Out here for 1.86 with 18 days to go; in for 2.74, out for 1.86, .88 ($88) profit/contract.
Hmm with 3 days left you might have been able to get the rest of the premium... but a bird in the hand...
NaughtyPines
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@bb_jm, Alternatively, would've expired worthless today ... . :-). With earnings, though, I kind of want to take advantage of the volatility contraction and then get out. Looking at the chart, it also looked like it was going to break the short put strike, so was probably glad for the bounce, took my candy and ran.
thierry1129
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amazing call, BA opening flat this morning
mak33139
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That strategy is guaranteed to fail with BA. Do you realize that this stock when it breaks out of the triangle has a tendency to run by over $100 + within a couple of days. Be careful and good luck.
NaughtyPines
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@mak33139, It's not a bet on what I think BA might do; it's a bet on what the options are pricing in, and it's not the movement you're describing. But one can never rule out an "outsized move," which is the bet you're taking. Good luck to you, too.
kennytran24
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BA 120p 9/18
ismartinvesting
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ba $138 short call
NaughtyPines
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@mercifulSeafow58699, Mmm. Interesting ... . I've done that on the put side (i.e., ITM short put, bullish assumption). Just not sure I'd want to run the risk of being assigned at 138 with a cost basis of 171, although if you get a move (pretty much any move toward the down side with a strike that is that high delta), it'll be "Winner winner chicken dinner."