NKE -- POST SPLIT/EARNINGS PREMIUM SELLING PLAY
After its split and shortly post-earnings, NKE still enjoys a fairly high level of volatility such that it offers a 1.00 credit plus premium setup (rank 53/implied 24).
Here's a setup:
NKE 58/67 Feb 12th short strangle
POP%: 74%
Max Profit: 1.07 credit (107/contract)
BPE: Undefined
Break Evens: 56.93/68.07
Notes: I ordinarily only want to enter a short strangle when the implied volatility rank exceeds 70%. However, my guess is that the split may have affected the 52-week vol stat (don't quote me on that), so I'm willing to play it even though its volatility isn't above the 70th percentile ... . That being said, we've got earnings upon us, so I'll have to look at it again at market open, see what buying power I have available, and make a decision as to whether I want to enter a 45 DTE setup here or not.
Here's a setup:
NKE 58/67 Feb 12th short strangle
POP%: 74%
Max Profit: 1.07 credit (107/contract)
BPE: Undefined
Break Evens: 56.93/68.07
Notes: I ordinarily only want to enter a short strangle when the implied volatility rank exceeds 70%. However, my guess is that the split may have affected the 52-week vol stat (don't quote me on that), so I'm willing to play it even though its volatility isn't above the 70th percentile ... . That being said, we've got earnings upon us, so I'll have to look at it again at market open, see what buying power I have available, and make a decision as to whether I want to enter a 45 DTE setup here or not.
Penafian
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