Description
PYPL moving up into the gap that was created following the earnings release. Not all gaps will be filled, but they give a good clue as to how supply and demand will play out.
I would typically put on a call credit spread for a long position, but this low volatility, lethaly-injected environment lends to being a seller of options.
I am also "hedged" with plenty of long options in case anything goes haywire.
Put Credit Spread
By Expiration
Max loss occurs at any strike under the long put (207.5)
Max gain occurs at any strike over the short put (210)
SL < 210
*Stops based off underlying stock price, not mark to market loss
The Trade
BUY
11/19 207.5P
SELL
11/19 210P
R/R & Breakevens vary on fill.
Looking to make 26% return on collateral by EOW.
The short put is placed under the opening bar following the post-earnings gap
The long call is placed 2.5 points away IAW collateral requirements, risk tolerance, and R/R.
Manage Risk
Only invest what you are willing to lose
PYPL moving up into the gap that was created following the earnings release. Not all gaps will be filled, but they give a good clue as to how supply and demand will play out.
I would typically put on a call credit spread for a long position, but this low volatility, lethaly-injected environment lends to being a seller of options.
I am also "hedged" with plenty of long options in case anything goes haywire.
Put Credit Spread
By Expiration
Max loss occurs at any strike under the long put (207.5)
Max gain occurs at any strike over the short put (210)
SL < 210
*Stops based off underlying stock price, not mark to market loss
The Trade
BUY
11/19 207.5P
SELL
11/19 210P
R/R & Breakevens vary on fill.
Looking to make 26% return on collateral by EOW.
The short put is placed under the opening bar following the post-earnings gap
The long call is placed 2.5 points away IAW collateral requirements, risk tolerance, and R/R.
Manage Risk
Only invest what you are willing to lose
Trade active:
Filled at .65.
It looks like you could get a better fill today.
It looks like you could get a better fill today.
Trade closed manually:
Not willing to stay in this one.
Filled @ .91, -40%
Filled @ .91, -40%