... for a 2.44/contract credit.
Notes: With price trading in between the 32 and 33 strikes, went skinny short strangle in lieu of short straddle. Since it's almost a straddle, I'll look to take profit at 25% max.
I've gone ahead and shown defined risk wings for an iron fly/skinny iron condor setup on the chart -- the September 18th 28/32/33/37, which was paying...
... for a 7.71 credit.
Notes: Earnings, high implied. There is some call side skew here that I occasionally try to accommodate in some fashion, but just went plain Jane delta neutral at around the 17 delta.
Defined Risk Alternatives:
September 18th 130/140/215/225, paying 3.63 at the mid as of the writing of this post, delta/theta 2.98/4.49.
... for a 4.18 credit.
Notes: Defined in the smaller, naked in the bigger.
Defined risk alternatives:
September 18th 105/115/180/190 iron condor, paying 3.51 (i.e., > 1/3rd the width of the wings) at the mid price as of the writing of this post. Some price discovery may be required on the four-legged, as it's bid 3.16/mid 3.51/ask 3.91, which isn't the...
... for a 3.05/contract credit.
Notes: Mechanical selling of SPY short puts in the expiry nearest 45 days until expiry ... at least while expiry-specific implied is above 20; here, it's 26.5%. Will run until expiry where it will expire worthless and/or I'll be assigned shares, at which point I'll sell calls against at the break even strike, which here is 293.95.
There's a bunch, but here are the ones that interest me most for volatility contraction plays:
BYND (46/87/17.2%)*, announcing Tuesday after market close.
ROKU (40/84/16.6%), announcing Wednesday after market close.
SQ (40/74/13.4%), announcing Wednesday after market close.
ETSY (38/74/14.8%), announcing Wednesday after market close.
... for a 2.82 credit.
Notes: Sold the short put nearest 16 delta in the expiry nearest 45 days until expiry. Running until expiry at which time it'll either (a) expire worthless or (b) be in-the-money, and I'll be assigned shares. If assigned shares, I'll proceed to sell call against at the strike nearest break even, which here is 292.18.
I frequently talk about "rolling" options out in time to extend duration, reduce cost basis, improve setup break evens, and increase profit potential, but if my review of recent postings on some options forums is any indication, I've basically taken it for granted that all options trading platforms have this built in as a "one step" process. Well, lo and behold,...
... for a 2.74/contract credit.
Notes: Earnings announcement volatility contraction play with 30-day implied at 70.9%. Will look to take profit and/or manage on side approaching worthless/break even test ... .
For those wanting to play naked, the August 21st 150/205 short strangle was paying 7.03 as of the writing of this post.
... for a 3.64/contract credit.
Notes: Going Plain Jane directionally neutral in the highest volatility broad market exchange-traded fund on the board. Looking to take profit at 50% max or manage on side approaching worthless/break even test.
-- PROBABLY PLAYING:
AMD (38/71/15.4%) announces on Tuesday after market close.
BA (25/71/15.1%) announces Wednesday before market open.
Pictured here is an AMD August 21st delta neutral 60/85 short strangle paying 2.93 as of Friday close.
The BA August 21st 150/210 was paying 7.23 at the mid.
Naturally, strikes may need adjustment running into...
... for a 3.45 credit.
Notes: Sold the strike nearest the 16 delta. Meant to do this earlier in the week, but probably got distracted by a few earnings plays. Cost basis of 291.55 if assigned. Basically, looking to do this programmatically every week in the expiry nearest 45 days 'til expiry and then run it to expiry, at which time these will either (a)...
... for a 2.55/contract debit.
Max Loss on Fill: $255
Max Profit on Fill/ROC% at Max: $45 (17.6% at Max)
Break Even: 6.55
Debit Paid to Spread Width Ratio: 85%
Notes: A small, bullish assumption trade in Ford in one of my favorite synthetic covered call setups. The debit paid to spread width ratio isn't what I generally like to...
... for a 5.96 credit.
Notes: A risk one to make one stays-within-the-expected move setup betting that treasuries don't move a ton in the next 59 days or so. Since it's "almost a straddle," will look to take profit at 25% max.
... for a 1.26/contract credit.
Notes: High rank/implied running into earnings. Looking to take profit at 50% max or otherwise manage on side approaching worthless or side test ... .
Defined Risk Alternatives: August 21st 17/25/25/33 iron fly, paying 4.00 (1.00 at 25% max) (a "stays within expected move" play) or an 18/21/28/31 iron condor, paying 1.05 (.52 at...
... for a 1.74/contract credit.
Notes: High rank/implied with earnings in 1. Looking to take profit at 50% or otherwise manage on side approaching worthless.
Defined Risk Alternatives: The August 21st 26/31/45/50 iron condor, paying .98. Generally, I like to get one-third the width of the widest wing out of these, but the call side is pesky with strike...
Bunch of options liquid underlyings announcing earnings this week:
IBM (27/36/<10%), Monday, After Market Close
SNAP (43/79/18.1%): Tuesday, After Market Close
MSFT (29/38/<10%): Wednesday, After Market Close
TWTR (44/69/15.8%): Thursday, Before Market Open
INTC (24/39/<10%): Thursday, After Market Close
AMZN (70/55/12.5%) (Thursday, After Market...