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.
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.
Comment:
Rolling the now 40 short put to the 45 short put to delta balance with 24 DTE for a .38 credit.
Comment:
Rolling the setup down and out as a unit to the Feb 19th expiry, 40/50 short strangle for a .28 credit.
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.
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.