NaughtyPines

QUNR EARNINGS AFTERGLO PREMIUM SELLING PLAY

NASDAQ:QUNR   QUNAR CAYMAN IS LTD
a year ago
QUNR             announced earnings a little more than a week ago, and IVR/IV remains high (76/74).

With this particular underlying, I'm potentially looking for a fairly quick volatility contraction and may not hold all the way to 50% maximum profit: the strikes are a bit unworkable where I would ideally want them for the Jan 15 expiry (I just can't tweak them to that 16% ITM/84% OTM level because the way they space out currently at that expiry at those levels).

Jan 15 35/55 short strangle
POP%: 70%
Max Profit: $223/contract
BPE: ~$468
BE's: 32.77/57.23

Note: I personally am not fond of these Cayman Island holding company setups operated as a "workaround" to various regulatory issues ... . That being said, I just can't help myself when presented with this kind of premium.
a year ago
Comment: Rolling the now 40 short put to the 45 short put to delta balance with 24 DTE for a .38 credit.
a year ago
Comment: Rolling the setup down and out as a unit to the Feb 19th expiry, 40/50 short strangle for a .28 credit.
a year ago
Comment: Rolling the 50 short call down to the 45 for an additional .72 credit, so now I've got a Feb 19th 45/45 short straddle.
a year ago
Comment: I think I missed a step here. I rolled the 45 short put down at some point for an additional credit, resulting in a Feb 19th 40/45 short strangle. In any event, covered this today for $5 more than scratch.
NaughtyPines
a year ago
Filled for 2.05 ... .
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NaughtyPines
a year ago
As with the FIT short strangle, I'm doing a little delta balancing here and rolling up the short put to 40 strike (same expiry) to get a little extra credit out of this intratrade upmove, creating a 40/55 short strangle.
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