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NaughtyPines
Nov 23, 2015 11:56 PM

DE -- EARNINGS PLAY 

Deere & CompanyNYSE

Description

DE (IVR/IV 72/40) announces earnings on Wednesday morning before market open, so if you're going to play this, look to put on your setup on Tuesday before market close.

Here's my tentative setup, which is subject to tweaking depending on whether it moves much in Tuesday's session:

Dec 11th 68/81.5 short strangle
POP%: 75%
Max Profit: 107/contract
BPE: ~$836
BE's: 62.93/82.57

As usual, I'll look to take this off at 50% max profit and redeploy the buying power elsewhere (assuming I can find something).
Comments
NaughtyPines
Inzee-outzee ... . Covered at 50% max ... . Love it when they're this easy.
NaughtyPines
Unfortunately, I waited until the end of the session (greed) and got filled for 1.03.
NaughtyPines
DE catching a volatility pop in early trading ... . This setup now goes for 1.50 credit/contract plus ... .
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