Here's the HD (IVR/IV 72/30) earnings play I'm shooting for. They announce earnings before market open on Tuesday, so look to put on a play some time before Monday's NY close.
Nov 27 113/126 short strangle for a 1.34 credit
POP%: 75%
Max Profit: $134/contract
BPE: ~$1805 (off hours, so I'm not sure that'll end up being correct on open)
BE's: 111.66/127.34
Notes: I considered skewing this slightly bearish, but price came off its highs quite a bit on Friday, so some of the potential down move may already be priced in ... . I'll look to take this off at 50% max profit ... .
Nov 27 113/126 short strangle for a 1.34 credit
POP%: 75%
Max Profit: $134/contract
BPE: ~$1805 (off hours, so I'm not sure that'll end up being correct on open)
BE's: 111.66/127.34
Notes: I considered skewing this slightly bearish, but price came off its highs quite a bit on Friday, so some of the potential down move may already be priced in ... . I'll look to take this off at 50% max profit ... .
