NaughtyPines

UPDATE: YUM BROKEN IRON CONDOR

NYSE:YUM   YUM BRANDS INC
a year ago
These earnings plays gone awry usually involve long stories, since it frequently takes a bit of time with rolling, massaging strikes, and such to get the thing into a state where you can exit for at least a scratch.

On October 6th, I played earnings via a 2 contract 72/75/90/93 iron condor, for which I received a .94 credit. Price proceeded to breach the short side, but I closed out the call side for a .16 debit, and then proceeded to roll out the 72/75 short put wing to the Nov 27th expiry for a 1.25 debit, which I matched with an opposition call side slightly above the short put side (same expiry; 73/76) for a 1.74 credit. On Nov 24th, I closed out the call side for .64 debit, rolled out the short put side to the Dec             31st expiry for a 1.78 debit, and again matched it with an oppositional call side ( Dec             31 75/78 for 1.66 credit) (so for the last two rolls I've basically been treading water, with debit received for the short put side roll about equal to that for the credit spread ). Truth be told, I had an opportunity to improve the short put side in early December when price broke 76, but wasn't paying attention ... .

In any event, with 10 DTE             , I'm looking to close out the short call side here while I can for a profit, as I don't really want to be short call YUM at 75, since I'm generally bullish on the underlying, given the fact that it's their intent to spin off the Chinese business which, last earnings, was a drag on price ... . I'll then proceed to deal with the short put side of the setup as we get closer to expiration ... .
a year ago
Comment: With 3 DTE due to the shortened holiday week, rolled the 72/75 short put side out to the 68/73, Jan 29 expiry for a .23 credit.
a year ago
Comment: Ordinarily, I match this short put side up with a short call side, but I can't get much credit for doing that, so I'm going to just leave the setup alone for now.
10 months ago
Comment: Rolled out the 68/73 for a .98 debit to the March 4th expiry and matched it with a 70/75 short call spread for a 1.44 credit, resulting in a net credit for the roll.
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