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 ... .
Closed short shares at a loss and moving on with other plays with the freed up buying power ... . Can't win 'em all.
NaughtyPines
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To my surprise, I was assigned 100 shares short at 126 today. Naturally that eats up a chunk of buying power, but my Dec 31 122 short is still there, so the hope is that I'll be called away at 122, or, in the alternative, to take the short shares off for scratch even before that. My original "scratch" level was 2.49 or $249, so I'm looking to take it off at 12600-249=12351 or if price of the underlying strikes 123.51 or so. I'll otherwise continue to sell short puts against the position ... .
NaughtyPines
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Rolled the call side out to Dec 31st 126 for a .60 credit; matched with a Dec 31st 122 short put for a .62 credit, so I collected 1.34 for the original setup, .60 for the rolled call, and .62 for the Dec 31st short put for a total of 2.56 in credits. The original setup's short put was closed for a .05 debit, so basically the "scratch point" is 2.56-.05=2.49, which is the price I'll look to take it off for.
NaughtyPines
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Took the put side off for .05; the call side has been tested with current price at 130, so I will look to roll that out early next week to a later expiration (probably Dec 31st) and then pair it up with an opposing short call to complete a new short strangle, which I will look to get out for scratch ... .
NaughtyPines
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With price moving up to the short call strike, I'll look to take the put side off for near worthless (.05 db) and the call side off for 50% max ... .