DIS EARNINGS PLAYS
Updated
DIS announces earnings today after market hours, so look to put on any setup before New York close.
Here are the two "classic" setups:
Feb 19th 82.5/100 short strangle
Probability of Profit %: 74%
Max Profit: 127/contract
Buying Power Effect: Undefined
Feb 19 77.5/82.5/100/105 iron condor
Probability of Profit %: 72%
Max Profit: 86/contract
Buying Power Effect: $414
Notes:
You can naturally play with the width of the iron condor wings to increase/decrease buying power effect and/or max profit potential.
As always, look to take the setup off at 50% max profit post-earnings or a side at or near max. In the event a side is tested, look to roll the tested side out for duration to a later expiry and then sell an oppositional side against the rolled side for a credit that exceeds the debit paid for any roll and look to exit the rolled out setup for scratch (total debits paid minus total credits paid = 0) and to redeploy your buying power elsewhere. They are, after all, meant to be quick and dirty plays ... .
Here are the two "classic" setups:
Feb 19th 82.5/100 short strangle
Probability of Profit %: 74%
Max Profit: 127/contract
Buying Power Effect: Undefined
Feb 19 77.5/82.5/100/105 iron condor
Probability of Profit %: 72%
Max Profit: 86/contract
Buying Power Effect: $414
Notes:
You can naturally play with the width of the iron condor wings to increase/decrease buying power effect and/or max profit potential.
As always, look to take the setup off at 50% max profit post-earnings or a side at or near max. In the event a side is tested, look to roll the tested side out for duration to a later expiry and then sell an oppositional side against the rolled side for a credit that exceeds the debit paid for any roll and look to exit the rolled out setup for scratch (total debits paid minus total credits paid = 0) and to redeploy your buying power elsewhere. They are, after all, meant to be quick and dirty plays ... .
Note
Filled a slightly tweaked 78/83/99.5/104 iron condor for .91 credit. Price is off 3.52 to 88.80 post-announcement, so well within my short strikes for now. Currently have a GTC order to take the whole thing off at 50% max profit.Note
Out at 50% max profit.
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