NaughtyPines

GMCR -- ANOTHER WEDNESDAY EARNINGS PLAY

NASDAQ:GMCR   KEURIG GREEN MTN INC
GMCR's been getting hammered since its last two earnings announcements, and with earnings being announced tomorrow after market close, look to put a play on before the closing NY bell sounds.

In any event, here's the setup I'm looking for a fill on tomorrow:

GMCR             Nov 27 31/49.5 short strangle
POP%: 75%
Max Profit: $185/contract
Buying Power Effect: ~$402/contract
BE's: 29.15/51.35

As with all short strangles earnings plays, I look to get in and out quickly, taking these off if they hit 50% max profit, and then redeploying the buying power elsewhere.
NaughtyPines
a year ago
Unfortunately, volatility ebbed during the day, so I couldn't get in at 1.85; settled for 1.30.
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NaughtyPines
a year ago
After earnings, the put side is worth less than .05, so I'll look to close that out tomorrow. With the call side, I'll look to take that off at 50% max, but will keep an eye on it, since it tested the call side today before retreating.
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NaughtyPines
a year ago
Closed the put side out for .05; the call side went for 50% max toward the end of the day (had me worried there for a bit).
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