NYSE:IBM   INTERNATIONAL BUSINESS MACHINES CORP
IBM             announces earnings on 10/19 after the market close. The volatility isn't flashy (currently at 59 IVR/ToS 52-Month), but this isn't one of those underlyings that gets very "excited" from a volatility standpoint anyways.

I'll look to put on a directionally neutral iron condor or short strangle some time during tomorrow's New York session, with an end-of-the-week ( Oct             23rd) expiry, which should offer sufficient time to scramble in the event that one of the sides is tested post-announcement.

Two possibilities:

A 140/143/157.5/160 Oct             23rd Iron Condor
POP %: 72%
Max Profit: .66/contract
Buying Power Effect: 4.68/contract
Break Evens: 142.34/158.16

A 143/157 Oct             23rd Short Strangle
POP%: 76%
Max Profit: 1.37/contract
Buying Power Effect: Undefined
Break Evens: 141.63/158.87

Note: Look to take either off at 50% max profit for the entire setup.

3Q Earnings Summary:

YUM put side breached: rolled out to currently inverted iron condor; will look to improve strike prices in subsequent cycles with goal being to get out at scratch or small profit.
NFLX: covered for 50% max profit.
Okay, so I put this entire IBM setup on for a .66 credit. On 10/20, I got out of the call side for a .05 debit and then rolled the put side out to Nov 20 for a .19 debit, selling an 147/150 call spread against for a .34 credit, which I exited today for a .05 debit. With me so far? So, to date, I've taken in a total of 1.00 i credit and covered or rolled for .29 in debits. 1.00-.29=.71 (or $71). So far, then, I've booked realized gains of $71 (minus fees and commissions). Unfortunately, the short put side (Nov 20 140/143) is still hanging out there; the original value of just that spread was 1.58 in credit after the first roll, put it is now worth 2.73, so it is underwater by 2.73-1.58=1.15 and 1.15-.71 (the profit realized so far) = .44, so I'm not quite to scratch yet ... . Fortunately, I've got software that will keep track of the "chain" debits and credits received for the original setup, any rolls, oppositional sells, and such, so that I know when I've reached breakeven and consider taking the trade off for scratch. In this case, it looks like I'll have to roll again if I want to take it off completely for a scratch and for a profit.
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Wow. I just cannot catch a break on these earnings plays. It looks like in AH trading, price will between my short put strikes. I will close out the call side at or near worthless, roll the put side out for duration and credit and sell a short call vertical against the rolled out position ... .
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