IBM announces earnings tomorrow after market, so look to put on a play before market close.
Here are two possible plays, but I'm looking at these in off hours, so I'm doubtful that the potential credit to be received is accurate, although the strikes, probability of profit, and break even metrics should be fairly accurate (as usual, they may require a strike of two of tweaking after market open):
Jan 29 119/142 short strangle
Probability of Profit %: 74%
Max Profit: $147/contract (tentative)
Buying Power Effect: ~$1493
Break Evens: 117.53/143.47
Jan 29 116/119/141/144 iron condor
Probability of Profit %: 68%
Max Profit: $21/contract (tentative; if it's ultimately the case that this setup will yield <1.00, I would pass on it or look at widening the wings to yield additional credit, assuming that's consistent with your risk tolerance)
Buying Power Effect: ~$279
Break Evens: 118.79/141.21
Notes: I'm already in an IBM trade left over from last earnings that I'm working on, so I won't be playing this one .... .
Here are two possible plays, but I'm looking at these in off hours, so I'm doubtful that the potential credit to be received is accurate, although the strikes, probability of profit, and break even metrics should be fairly accurate (as usual, they may require a strike of two of tweaking after market open):
Jan 29 119/142 short strangle
Probability of Profit %: 74%
Max Profit: $147/contract (tentative)
Buying Power Effect: ~$1493
Break Evens: 117.53/143.47
Jan 29 116/119/141/144 iron condor
Probability of Profit %: 68%
Max Profit: $21/contract (tentative; if it's ultimately the case that this setup will yield <1.00, I would pass on it or look at widening the wings to yield additional credit, assuming that's consistent with your risk tolerance)
Buying Power Effect: ~$279
Break Evens: 118.79/141.21
Notes: I'm already in an IBM trade left over from last earnings that I'm working on, so I won't be playing this one .... .