NKE announces earnings on 12/22 (Tuesday) after market close, so look to put on your play before NY close.
Here's the standard short strangle setup:
Dec 31st 118/141 short strangle
POP%: 75%
Max Profit: 1.25 credit ($125)/contract
BPE: ~$1572
BE's: 116.75/142.25
Note: I ran an iron condor setup, but it looks like it will generate less than a .50 credit/contract ... . I would also note that it may be less than ideally liquid, so you may want to shoot for a higher fill price if the opportunity presents itself.
Here's the standard short strangle setup:
Dec 31st 118/141 short strangle
POP%: 75%
Max Profit: 1.25 credit ($125)/contract
BPE: ~$1572
BE's: 116.75/142.25
Note: I ran an iron condor setup, but it looks like it will generate less than a .50 credit/contract ... . I would also note that it may be less than ideally liquid, so you may want to shoot for a higher fill price if the opportunity presents itself.
Comment:
Post-announcement, it looks like NKE took a minor bounce that is well within my short strikes. My guess is that with the upcoming split, there may be less buying interest than usual post-announcement and that buyers are potentially waiting to pounce on it post split ... .
Comment:
Out for 50% max profit. Gotta love the quickies ... .