... for a 2.23 credit. (Earnings volatility contraction play).
Metrics:
Probability of Profit: Coin Flip
Max Profit: $223/contract
Max Loss/Buying Power Effect: $177/contract
Break Evens: 56.27/61.23
Notes: I filled this at open, but price has moved down somewhat, so you may want to adjust the setup by a half strike or so. In any event, this thing's so narrow, that's it's almost an iron fly, so I'll look to manage at 25% of max profit.
Metrics:
Probability of Profit: Coin Flip
Max Profit: $223/contract
Max Loss/Buying Power Effect: $177/contract
Break Evens: 56.27/61.23
Notes: I filled this at open, but price has moved down somewhat, so you may want to adjust the setup by a half strike or so. In any event, this thing's so narrow, that's it's almost an iron fly, so I'll look to manage at 25% of max profit.
Comment:
NKE drops to ~57 post-announcement/clear of the put side break even for now.
Comment:
Covering the worthless call side for a .03 ($3) debit. Scratch point's at $220. Will watch it for "a bit" before doing anything with the put side ... .
Comment:
Rolling the 54.5 long put down to the 53 (same expiry) for a .41 ($41)/contract credit. Scratch point at 2.61. While this improves my breakeven for the side, it also increases the buying power effect for the spread ... .
Comment:
And to be "better safe than sorry," selling an April 21st 56/59 short call vert for a .42 credit to give the setup some sorely needed short delta. Scratch at 3.02.
Trade closed manually:
Oops ... . Got assigned early. Closed out the short call vert for .61 debit, the leftover long put that was part of the short put side of the setup for a .14 credit, and then sold the stock for a 54.58. All totaled, a 1.34 loss ... . Naturally, I could have proceeded to work the long stock as a covered call, attempting to mitigate that further, but just want more stock to play with here.