NaughtyPines

P NONEARNINGS PREMIUM SELLING PLAY

NYSE:P   PANDORA MEDIA INC
Now that I'm out of my P 12/12 short straddle for a small profit, I'm almost immediately looking at it again, since it popped up on my screener based on its high IVR             (currently 74, 104 for its IV).

Most of the time, I want to get at least a 1.00 credit ($100 max profit) out of my short strangles, since the vast majority of the time I take them off at 50% max (i.e., I'm looking to make $50/contract on most of my plays).

In this particular case, if I go out to the 1 SD             , I won't quite get a $1.00, but if I squeeze the strikes in just a touch, I can eek out that.

So here's the play:

Jan 22 8.5/16 short strangle
POP%: 69%
Max Profit: $102/contract
BPE: ~ (Undefined/Off Hours)
BE's: 7.48/17.02

Generally, I don't like to force these much below 70% POP, but when it's this close, and the underlying's this cheap, I'm willing to take a small risk to deviate from my ordinary setup. Naturally, this may all change by Monday .... .

Comment: Out of the trade on Friday for 50% max ... . I'll gladly take that on a slightly tighter than usual setup.
Jan 22nd 9/16 short strangle filled for a 1.12 credit ... .
Reply
United States
United Kingdom
India
Deutschland
France
España
Italia
Polska
Türkiye
Россия
Brasil
Indonesia
Malaysia
Việt Nam
日本
한국
简体
繁體
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Priority Support Contact Support Ideas Published Followers Following Private Messages Chat Sign Out