If you have the original trade I posted. Create a similar roll.
SELL -2 VERTICAL BYND 100 (Weeklys) 7 AUG 20 134/130 PUT @1.75 LMT SELL -2 VERTICAL BYND 100 (Weeklys) 7 AUG 20 140/144 CALL @1.62 LMT
You can do something like this - the credit wont change much thanks to high IV.
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Earnings reported - As long as it trades tomorrow between 134 and 139, you are in the best shape.
With all the adjustment and the credits received. 128-144 profitable. So manage accordingly.
This might go down to 120, there is not enough excitement here in the market action. if it happens, close the winning side and wait for the retracement to close the other side.
MANAGE and MANAGE
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Closed for $200 per contract in profit. Entire position is done.
As expected the volatility drop was huge. Almost 70 points dropped.
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If you had my original iron condor short at @130. Thats @$300 gain exit now.
@iqtedarhussein4, Thanks. Thats how I typically trade. Manage whats infront of me.
iqtedarhussein4
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This will never happen , BYND prices have been trading in a really tight range and my indicator shows a probable massive move after report either up or down by more than 15%
Save this comment and watch when it reports tomorrow.
ATM IV currently stands at 130 and if this thing goes above 200 tomorrow before market closes you can be sure as hell that the stock will put up a massive move after its report
Now whether or not it will keep the % moved after reporting will depend entirely on the result itsef
UDAY_C_Santhakumar
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@iqtedarhussein4, Its ok anyway for me. I can manage it. Regardless of where it opens.
I am strictly trading the R/R. If one should worry losing $173 a contract, then they should not be taking this position. The move to the upside is highly probable. Options are priced accoringly. But, $173 max risk. Should you sweat it this much? Not in my opinion.
If you are too worried, you can diminish you credit by adding two long call / put positions. for explosive move. Still a good R/R according to your price.
Now, Good Luck to you.
iqtedarhussein4
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@ucsgears, In terms of RR i totally respect your trade.
Keep an eye on the ATM IV though it it never lies when it comes to big movements.
Been using it for Twitter, Snap ,Pinterest among others
UDAY_C_Santhakumar
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@iqtedarhussein4, Yeah its a hefty credit, because of the IV. The IV will drop almost 40-60% in my opinion, Getting a Debit trade 2 weeks prior to earning on a stock like this doesnt make sense. Your comment is respectable, I appreciate your thoughts.
The way I manage this would be, If it opens 1 SD - close the entire IC for a profit. If its between 2SD - close the profitable side and wait for a retracement to close the other side. If its past 2SD, I will be managing this accordingly by moving legs and spread out the risk (will end up taking a smaller loss than 173/C). A 3SD move will most definetly have an intraday retracement, Double down on the retracement, mostly end up profitable.
Over all, when doing this on multiple earnings, it will be profitable.
My gut feeling says, this would be opening between 1SD and 2 SD. (120-125 or 138 - 143).
Hope this clarifies how I intend to trade this.
UDAY_C_Santhakumar
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@iqtedarhussein4, If you are confident that this would trade at 200. Add a strangle 150C/110P to the iron condor. Creating what I call a "W" spread.
The managing technique is a bit more complex when it doesnt go your way. But the R/R is amazing. I however, don't see this happening. I have been wrong many times, wont be the first time I curse the world if it goes to 200.
iqtedarhussein4
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@ucsgears, Yeah could do that as well
Lets see tomorrow after the close!