Description:
Earnings after close on Wednesday, taking advantage of high IV on same week options and covering with next week's (Calendar Spread).
From Deltaone on Twitter: https://twitter.com/DeItaone/status/1454785325356683266
Long Call Calendar Spread
Levels on Chart
Break-evens
R/R: ~5:1
Positive R/R, stop loss levels built into position.
Intend to close before near term expiration.
*Stops based off underlying stock price, not mark to market loss
The Trade
BUY
11/12 307.5C
SELL
11/05 307.5C
Only invest what you are willing to lose
Break-evens and R/R vary on fill
Earnings after close on Wednesday, taking advantage of high IV on same week options and covering with next week's (Calendar Spread).
From Deltaone on Twitter: https://twitter.com/DeItaone/status/1454785325356683266
- 76% expect beat
- 9.5% move priced in
- 7.7% avg move post earnings in recent quarters
Long Call Calendar Spread
Levels on Chart
Break-evens
- 344.96, +12.89%
- 275.74, -9.77%
R/R: ~5:1
Positive R/R, stop loss levels built into position.
Intend to close before near term expiration.
*Stops based off underlying stock price, not mark to market loss
The Trade
BUY
11/12 307.5C
SELL
11/05 307.5C
Only invest what you are willing to lose
Break-evens and R/R vary on fill
Comment:
Will update when/if I fill these.
Comment:
Going to look to enter on Wednesday.
Comment:
ROKU has moved away from the strike at which the spread was initially intended to be opened.
This is fine, I will comment with a link to a new published chart depicting the break-evens and max profit at time of opening.
It is also looking like the R/R has moved down to ~4:1, but break-evens remain similar.
This is fine, I will comment with a link to a new published chart depicting the break-evens and max profit at time of opening.
It is also looking like the R/R has moved down to ~4:1, but break-evens remain similar.
Trade active:
Filled the 310C Calendar Spread at 2.55, producing ~4.5:1 R/R.
UPDATED TRADE
BUY
11/12 310C
SELL
11/5 310C
New Levels:
UPDATED TRADE
BUY
11/12 310C
SELL
11/5 310C
New Levels:
Trade active:
Roku settled after hours at ~288, -8%, which is still within the profit range that extends from 275 - 352.
I will decide when to close the position based on early moves tomorrow, but generally will choose to stop out the calendar spread if it breaches the lower break-even, in this case at 275.
I will decide when to close the position based on early moves tomorrow, but generally will choose to stop out the calendar spread if it breaches the lower break-even, in this case at 275.
Trade active:
ROKU has already raced back to the strike, so I'm comfortable letting these ride a little longer.
Otherwise, you could take a smooth +35% return.
Otherwise, you could take a smooth +35% return.
Comment:
Closed this one out at .9, -65%
Holding it proved to be a bust, I could have taken the +35% mentioned on the day prior.
The breakeven mentioned when the idea was first published didn't hold due to the decrease in IV in the later week option as well.
but, if there's earnings, I'm calendar spreading.
Holding it proved to be a bust, I could have taken the +35% mentioned on the day prior.
The breakeven mentioned when the idea was first published didn't hold due to the decrease in IV in the later week option as well.
but, if there's earnings, I'm calendar spreading.