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.
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.