BIDU announces earnings "some time tomorrow", so it could be either before or after market; if you want to play it, look to put on a setup before today's market close. One thing I would note is that the bid/ask spreads aren't that great, implying that the options' liquidity isn't the best in the world, so I would look to put on a play at the mid price, but not to chase price ... . In any event, here are the setups:
For the folks who like to "go naked":
Feb 19th 124/157.5 short strangle
Probability of Profit %: 72%
Max Profit: $225/contract
Buying Power Effect: Undefined
For those who are "more shy" or of a defined risk bent (I've gone out a little farther in time because I can't get the long option strikes I want for a symmetrical setup in the Feb 19th expiry):
Feb 26th 115/120/165/170 iron condor
Probability of Profit %: 70%
Max Profit: $117/contract
Buying Power Effect: $382
Look to take off the entire setup at 50% max profit or a single side nearing worthless. In the event a side is tested, look to roll that side out to a later expiry and sell and oppositional side against the rolled out option(s) for a credit that exceeds the cost of the roll of the tested side.
For the folks who like to "go naked":
Feb 19th 124/157.5 short strangle
Probability of Profit %: 72%
Max Profit: $225/contract
Buying Power Effect: Undefined
For those who are "more shy" or of a defined risk bent (I've gone out a little farther in time because I can't get the long option strikes I want for a symmetrical setup in the Feb 19th expiry):
Feb 26th 115/120/165/170 iron condor
Probability of Profit %: 70%
Max Profit: $117/contract
Buying Power Effect: $382
Look to take off the entire setup at 50% max profit or a single side nearing worthless. In the event a side is tested, look to roll that side out to a later expiry and sell and oppositional side against the rolled out option(s) for a credit that exceeds the cost of the roll of the tested side.
Comment:
Managed to get a fill on a setup to my liking in the Feb 19th expiry -- a 118/123/157.5/162.5 iron condor; filled for a .90 credit. Of course, my BIDU setup fills immediately, but my DIS is still just hanging out there right at the mid ... .
Comment:
The annoying, slippery slope of ADR's. Originally, they were to have announced earnings on 2/10 "some time." Several days came and went and today, an announcement that earnings will be announced on 2/25. Oh, well, already in a play. We'll just have to see how it goes.
Comment:
With price breaching my short call strike and the put side nearing worthless, I'll look to close out the put side and roll the call for duration. (Out of the the put side for a .05 debit while writing this).
Comment:
Rolled the call side "as is" out to Feb 26th for a .06 debit and sold a Feb 26th 133/138 short put spread against the rolled position for a .60 credit. Naturally, this isn't ideal, since earnings are now scheduled to be announced on Feb 25th. We'll just have to see how it goes.
Comment:
With 4 DTE, earnings set for the 25th, and the call side breached on the setup, I would ordinarily say that I'm between a rock and a hard place. With situations like these, it's important to stay mechanical, so I'm going to roll out the short call side on Tuesday "as is," since I want to wait until after earnings to see what happens with price. I'll keep an eye the short put side, but at this point, I'm just going to let it expire worthless, since the spread is 30 strikes below current price (but still has a bit of extrinsic value in it).
Comment:
Rolled out the call side as is to the March 4th expiry for .03 credit. I'm going to wait to match it up with an oppositional side post-earnings ... .
Comment:
Closed out the call side for a 2.15 debit on early morning market weakness and the put side for a .39 debit, resulting in a loss of 1.39 on the trade. I figured that now that I knew when actual earnings were (tomorrow), that I'd put on a fresh setup rather than row against the current.