Tuesday, September 29, 2009

Earnings Strangles

Sold a DRI JAN 31/41 strangle for $2.45 credit. They report after close today, I'm looking for at least 10-15% over the next couple days due to the IV crush.

3 comments:

  1. Had that as calendar a couple of weeks ago. Closed the front month a week ago and just held onto to the January puts. Stocks down 2.00 in after hours trading. Probably close out my January puts first thing tomorrow. I got lucky with this one.

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  2. Did you hold it through earnings accidentally, or were you biased to the downside with the puts? Calendars should typically be closed out prior to earnings or so they say, just wondering if you have a different take on it.

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  3. This was not a text book trade by any means. I held it through earnings (anticipating/hoping) for a drop. I got lucky!!

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