So my first earnings play this season (YUM) didn't go all that hot ... . Naturally, rolling out for duration and credit is part and parcel of the premium selling game, but like any other kid in the candy store, I just want to take my candy and go ... .
Perhaps NFLX will be a different story. With earnings to be announced on 10/14 after the market close and with juicy IVR (currently at 80) and IV (81), it looks to be the premium selling opportunity of the week.
I'll look to put on a play on or before market close on 10/14 via iron condor or short strangle. Here are the possible setups given current price:
Oct 23rd 88/91/135/138 Iron Condor
POP%: 70%
Max Profit: $73/contract
Buying Power Effect: $227/contract
Break Evens: 90.27/135.73
Oct 23rd 91/135 Short Strangle
POP%: 75%
Max Profit: $314/contract
Buying Power Effect: Undefined
Break Evens: 87.86/138.14
Notes: I could see some merit in shifting the setups slightly (2-3 strikes?) to the bearish side on the notion that the 2015 high is below the 130 strike. Look to take the entire setup off at 50% max profit ... .
Perhaps NFLX will be a different story. With earnings to be announced on 10/14 after the market close and with juicy IVR (currently at 80) and IV (81), it looks to be the premium selling opportunity of the week.
I'll look to put on a play on or before market close on 10/14 via iron condor or short strangle. Here are the possible setups given current price:
Oct 23rd 88/91/135/138 Iron Condor
POP%: 70%
Max Profit: $73/contract
Buying Power Effect: $227/contract
Break Evens: 90.27/135.73
Oct 23rd 91/135 Short Strangle
POP%: 75%
Max Profit: $314/contract
Buying Power Effect: Undefined
Break Evens: 87.86/138.14
Notes: I could see some merit in shifting the setups slightly (2-3 strikes?) to the bearish side on the notion that the 2015 high is below the 130 strike. Look to take the entire setup off at 50% max profit ... .
