$X Iron Fly
Buy: 10/18 13c for .10
Sell: 10/18 11c for .63
Sell: 10/18 11p for .66
Buy: 10/18 9p for .11
Net Credit: $1.08 (Max Profit if pinned @ $11)
BP Reduction: $0.92 (Max Loss)
Profit Range of $9.92 - $12.08
$x $aks US steel looks good-Potential for lower prices before it breaks above this descending pattern. I was bearish on X above 46. I didn't think it would come this far down but some special could be in the works.. It could go RIPPING higher but I would not blink if it dropped to 5 or 6 per share again. Bear chart from 2018:...
On initial screen for high rank/high implied, here are next week's potential winners for earnings-related volatility contraction plays: AAPL (31/27) (Tuesday after market close), X (52/54) (Thursday after market close), GILD (30/27) (Tuesday after market close), and BIDU (50/41) (Tuesday, but unspecified as to before or after market close). Because...
Pictured here is an INDA (66/29) short strangle in the June cycle set up around the 25 delta strikes. Paying 1.00 at the mid, it has break evens of 32.00/39.00, a buying power effect of 5.65, and delta/theta metrics of .68/1.98. Unfortunately, it doesn't have the tightest markets, so expect a little price discovery should you want to get a fill.
... for a .49/contract credit.
Max Profit: $49
Buying Power Effect: ~$202/contract
Break Even/Cost Basis If Assigned: $18.51/share
Notes: Here, I'm just looking to deploy some buying power in one of the few underlyings with fairly decent implied volatility (42.4%) at a high probability of profit strike (the 16). I'm fine with...
The only underlying that interests me for an earnings announcement-related volatility contraction play this coming week is TWTR (62/67).
March 15th 28/38 Short Strangle (Pictured): 1.73 credit (.87 at 50% max), break evens at 26.27/39.73, -8.98 delta, 4.78 theta.
March 15th 25/28/38/41 Iron Condor: 1.01 credit (.50 at 50% max),...