NaughtyPines

FIT -- POST-EARNINGS PREMIUM SELLING PLAY

NYSE:FIT   FITBIT INC
a year ago
I'm looking to put on a couple more plays to bridge the gap between the end of this earnings season and the next, but worthwhile +70 IVR             non-earnings announcement plays look to be somewhat hard to come by.

Post-earnings, FIT's IV remains high (70) (it currently doesn't have a 52-week ThinkOrSwim IVR             , since it hasn't been around long enough) and the premium is juicy enough 45 DTE             or so such that it might make a worthwhile play. This is somewhat unusual for an underlying priced under $50, but what makes premium selling worthwhile here is not the price of the underlying, but the high IV. The drawback is that the underlying isn't the most liquid thing in the world in terms of options, so it may difficult to get a fill for the setup at the midprice.

Nevertheless, I'm going to put on a trade setup in off hours and try to get a fill without chasing price, since I'm not exactly desperate for plays, but like to stay engaged by looking for at least one new, potentially productive setup a day.

Here's the setup:

Jan 15 21/33 short strangle to fill at 1.48
POP%: 72%
Max Profit: $148/contract
Buying Power Effect: ~$268
Break Evens: 19.52/34.48
11 months ago
Comment: This thing is tanking today. Rolling my Jan 15 26/33 short strangle out to the Feb 5th 22.5/31 for an additional .55 credit.
10 months ago
Comment: More tanking in progress; rolling the 31 short call down to the 22.5 for an additional .73 in credit, resulting in a 22.5/22.5 short straddle.
10 months ago
Comment: With the setup expiring this Friday, I'll look to roll the short straddle out "as is" to the March 11th expiry for an additional 1.15 credit. I'll then look to see what my "scratch point" is at ... .
10 months ago
Comment: Rolled the 22.5/22.5 short straddle out to March 11th for an additional .96 credit.
NaughtyPines
a year ago
Filled for 1.38 ... .
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NaughtyPines
a year ago
With 39 days to go, I'm rolling up the put side to the 26 strike for an additional .46 credit, so it's a Jan 15 26/33 short strangle now.
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