BTC U 28.50-29.50 Call Vertical @ 0.15 . (0.06) loss
STC U 31.50-32.00 Call Vertical @ 0.75 +0.29 profit
Net Profit = 0.23 Opening Position Cost 0.36 63% return
BTO CRSR 17.50 Put @0.65
STC CRSR 17.50 Put @0.15 (0.50) loss -76% return
CRSR was down 1.39 in the after hours market after earnings, opened the next day unchanged, is currently up 2.09.
Some readers were asking the best way to manage post-earnings closing trades, I recommend doing whatever worked in the recent past.. For example, if you have a string of trades that you closed out too soon, hold onto the position longer next time. My last three earnings trades were FSR (best strategy was to close ASAP, those who held on are looking at close to 100% loss instead of 50%+ gains), CRSR (best strategy was to hold longer on the unhedged vertical spread position, best strategy was close out ASAP on the hedged position with short vertical) and CRSR (best to close out ASAP to capture 0.15 on the put before it went to zero). Options markets are strongly autocorrelated (current volatility is influenced by recent past volatility), so the crude metric of doing whatever worked recently has a strong fundamental basis.
BTO U 28.50-29.50 Call Vertical @ 0.46 (yesterday). Can get it today for less.
STO U 31.50-32.00 Call Vertical @ 0.10 (today)
This creates an off-strike butterfly/condor type spread. The upper short vertical finances the lower, higher cost vertical. Because the top wing size is 0.50 and the bottom wing size is 1.00, this spread still wins if the stock blows through the top strike, avoiding a very common loss when trading butterflies. If the stock misses earnings, the 0.10 premium received reduces the loss from 0.46 to 0.36, a 22% reduction.
Okay, looks like I'm out of the spreads expiring tomorrow. I'm going to let the ones expiring on the 19th ride for a bit and see if they move in my direction.
Since I missed every single one, how much room do I have if I try to place them tomorrow? Meaning, if they move more than X, say for the HRB, a net debit of 0.40 where you entered, how much movement is too much before its not worth it?
BTC U 28.50-29.50 Call Vertical @ 0.15 . (0.06) loss
STC U 31.50-32.00 Call Vertical @ 0.75 +0.29 profit
Net Profit = 0.23 Opening Position Cost 0.36 63% return
BTO CRSR 17.50 Put @0.65
STC CRSR 17.50 Put @0.15 (0.50) loss -76% return
CRSR was down 1.39 in the after hours market after earnings, opened the next day unchanged, is currently up 2.09.
Some readers were asking the best way to manage post-earnings closing trades, I recommend doing whatever worked in the recent past.. For example, if you have a string of trades that you closed out too soon, hold onto the position longer next time. My last three earnings trades were FSR (best strategy was to close ASAP, those who held on are looking at close to 100% loss instead of 50%+ gains), CRSR (best strategy was to hold longer on the unhedged vertical spread position, best strategy was close out ASAP on the hedged position with short vertical) and CRSR (best to close out ASAP to capture 0.15 on the put before it went to zero). Options markets are strongly autocorrelated (current volatility is influenced by recent past volatility), so the crude metric of doing whatever worked recently has a strong fundamental basis.
SELL TO CLOSE VERTICAL FSR 5.5-6.5 2023-05-12 PUT @0.60 +48%
SELL TO CLOSE EQUITY_OPTION FSR 5.5 2023-05-12 PUT @ 0.25 +47%
SELL TO CLOSE EQUITY_OPTION FSR 5.5 2023-05-12 PUT @ 0.3 +76%
SELL TO CLOSE VERTICAL FSR 5.5-6 2023-05-12 PUT @ 0.29 +81%
Modified the U trade slightly:
BTO U 28.50-29.50 Call Vertical @ 0.46 (yesterday). Can get it today for less.
STO U 31.50-32.00 Call Vertical @ 0.10 (today)
This creates an off-strike butterfly/condor type spread. The upper short vertical finances the lower, higher cost vertical. Because the top wing size is 0.50 and the bottom wing size is 1.00, this spread still wins if the stock blows through the top strike, avoiding a very common loss when trading butterflies. If the stock misses earnings, the 0.10 premium received reduces the loss from 0.46 to 0.36, a 22% reduction.
FSR down more 1.00 pre-open, will be taking profits at the open on the 5.50-6.50 put verticals in my main account and some long 5.50s puts in my IRA.
It is easy to lose all profit in a short covering rally.
I think there may be a misprint on the U trade. Break even would be the stock ABOVE $28.91 not below. Correct?
CRSR spread expired today for a loss of 100%.
Exited my HRB spread at a net credit of $0.70, for a gain of 75%.
Exited the LNW spread today at a net credit of $2 for a gain of 48%.
Okay, looks like I'm out of the spreads expiring tomorrow. I'm going to let the ones expiring on the 19th ride for a bit and see if they move in my direction.
Exited my U spread today at a net credit of $0.85, for a gain of 107%.
Exited the FSR spread today at $0.54 for a net gain of 12.5%.
What are your thoughts on Unity spread since they expire on Friday. break even as of now...
BUY TO OPEN EQUITY_OPTION CRSR 17.5 2023-05-19 PUT @0.65 exch XBOX
BUY TO OPEN EQUITY_OPTION CRSR 17.5 2023-05-19 PUT @ 0.65
exit TPX, or do you think it will come down before exp. date?
Since I missed every single one, how much room do I have if I try to place them tomorrow? Meaning, if they move more than X, say for the HRB, a net debit of 0.40 where you entered, how much movement is too much before its not worth it?