FB -- EARNINGS PLAY
Okay, okay, okay ... . So FB doesn't meet my ordinary criteria of having high IVR (70+) and high IV (50+) for purposes of selling premium (currently its IVR/IV is 46/36). My excuse is, "Hey, it's Facebook; you can't not play Facebook" (plus the typical 1 SD short strangle yields $145 per contract and the options, unlike some of my plays, are extremely liquid, with >.05 between the bid and the ask).
Here's what I'll probably go with, although some tweaking might be in order as we move through the trading day:
Nov 17th 92.5/112 Short Strangle
POP%: 73%
Max Profit: $145/contract
BPE: Undefined
BE's: 91.05/113.45
Notes: I'm going with the Nov 17th expiry, because the options are slightly more liquid there, insuring a greater likelihood of a fill at a "fair price." I could see skewing this a bit bearish, seeing as we're at all time highs; we'll just see how things go throughout the trading day and adjust the strikes accordingly. I'll look to take this off at 50% max profit.
Should you wish to opt for an iron condor, use the above short strikes, along with longs 2-4 strikes out from those (e.g., 89.5/92.5/112/115 iron condor).
Here's what I'll probably go with, although some tweaking might be in order as we move through the trading day:
Nov 17th 92.5/112 Short Strangle
POP%: 73%
Max Profit: $145/contract
BPE: Undefined
BE's: 91.05/113.45
Notes: I'm going with the Nov 17th expiry, because the options are slightly more liquid there, insuring a greater likelihood of a fill at a "fair price." I could see skewing this a bit bearish, seeing as we're at all time highs; we'll just see how things go throughout the trading day and adjust the strikes accordingly. I'll look to take this off at 50% max profit.
Should you wish to opt for an iron condor, use the above short strikes, along with longs 2-4 strikes out from those (e.g., 89.5/92.5/112/115 iron condor).
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.