Here's another-BWLD, they report Oct 27th, roughly six weeks from now. Looking at the IVOL chart, IV is pretty low right now, just about even with HV also. Looking at the last two earnings, IV spiked beforehand then fell through the floor almost immediately. I'm going to do a OCT/DEC 40 call calendar spread tomorrow, then put on a short strangle around Oct 21st, if IV is spiking like it normally does.
Mike, you might want to try to place another horizontal calendar ATM to prop up your range? Like Tim mentioned, get more than .50 credit on the short leg.
Mike, are you planning on closing the short side before earnings? Personally I wouldn't want to stay through the report. That's why I'm choosing candidates that report after October expiration.
Justin, Shawnta, I was planning on getting out of the short side right before earnings. I have a week and half until earnings so I think I'm going to give it until the end of next week. I might take Shawnta's advice and place another calendar ATM. How are you doing with your BBT? I also have naked puts on RIMM and UA, at least those are working for me.
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Darden Restaurants(DRI)- Bought Jan 33 puts, sold October 33. Earnings due out on Sept. 29th.
ReplyDeleteBBT
ReplyDeleteBought JAN 26 put, sold OCT 26 put, debit of $1.40. They report between 10/12 and 10/22.
Here's another-BWLD, they report Oct 27th, roughly six weeks from now. Looking at the IVOL chart, IV is pretty low right now, just about even with HV also. Looking at the last two earnings, IV spiked beforehand then fell through the floor almost immediately. I'm going to do a OCT/DEC 40 call calendar spread tomorrow, then put on a short strangle around Oct 21st, if IV is spiking like it normally does.
ReplyDeleteMy DRI calendar is just sitting at break-even. The stock ran up a little more than I expected, but I'm going to ride it out for a while.
ReplyDeleteMike, you might want to try to place another horizontal calendar ATM to prop up your range? Like Tim mentioned, get more than .50 credit on the short leg.
ReplyDeleteMike, are you planning on closing the short side before earnings? Personally I wouldn't want to stay through the report. That's why I'm choosing candidates that report after October expiration.
ReplyDeleteJustin, Shawnta, I was planning on getting out of the short side right before earnings. I have a week and half until earnings so I think I'm going to give it until the end of next week. I might take Shawnta's advice and place another calendar ATM. How are you doing with your BBT?
ReplyDeleteI also have naked puts on RIMM and UA, at least those are working for me.