Bought a few $7 calls for earnings, upside is greater than downside risk. Options are actually pretty cheap, you could potentially to a $7.5 straddle and make money, because I think it's either gonna head to resistance (up) or support (down) by the end of the week.
I'm going long. I think it got over punished last earnings.
Trade closed manually
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Well there's the dollar gap, should have gone with the straddle, oh well.
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Well, at least I made my money back by flipping TSLA puts, lol. Should have just gone for the easy trades, earnings are always a crap shoot.
@exxodus, I told you it would move big... wish I had done the straddle.
Easy day to make money flipping puts though. Made money today, just closed everything out except UAA puts. If NKE misses, then UAA is closing that gap.
exxodus
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@hungry_hippo, Funny part is that there was a spike up right before the close yesterday. Straddle would have been 150% gain lol. We both missed it.
I am holding some short plays from last week. Doing spreads makes it easy to hold a downside play. Just holding puts alone can be tough you can get hurt so fast.
exxodus
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covered TSLA as well. If it bounces before earnings I will be looking to get back in.
hungry_hippo
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@exxodus, it's probably headed to $210, I just thought 5% drop in one day was enough, but Trump, lol. Dude really loves China doesn;t he?
exxodus
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Wow. I was hoping this would go up since my calls (for .32) were almost at the money.
Those 7 puts I got for .17 were just cheap insurance. Just closed them at .9 :)
Thanks!
hungry_hippo
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@exxodus, yeah, a true straddle would have been the best way to play it, should have taken my own advice. Oh well. At least I made money today despite my mistake.
exxodus
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I did a strangle, 7.5 calls and the 7 puts. With 4 days left i think it is a pretty safe play.
hungry_hippo
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@exxodus, yeah, I expect it to move about a buck, so you'll probably double your money if it goes up, even if it goes down.