OPENING: BBBY AUGUST 21ST 10/11 SKINNY SHORT STRANGLE
... for a 2.68 credit.
Notes: Earnings in 1; high rank/implied at 55/128. Went with a skinny short strangle over a short straddle, since price is blooping around 10.50, which is in between strikes. Will still look to manage at 25% max, since it's very nearly a short straddle.
Notes: Earnings in 1; high rank/implied at 55/128. Went with a skinny short strangle over a short straddle, since price is blooping around 10.50, which is in between strikes. Will still look to manage at 25% max, since it's very nearly a short straddle.
Trade active:
Rolled the 11 call down to the 8 for a .68 credit; scratch at 3.36 on a two-wide inversion, so the most I can make out of this setup in its current state is 1.36.
Trade active:
Hit my scratch out target of 3.36 today ... . My preference on broken earnings plays is to scratch them out, particularly if you can do that quickly. The whole point of these is to play the volatility contraction and -- if it doesn't work out -- head for the door as soon as that's doable ... .