A couple of other ideas for next week surrounding earnings ... . I like to have a lot of these ideas in the hopper so that I can price setups during regular market hours; some of these aren't as "sexy"/liquid during NY as they appear in off hours.
JNPR Dec 2nd 21 short puts; .45 cr at the mid (strike around long-term support). Earnings (10/25). I generally do these earnings plays with a short strangle or iron condor, but just can't get squat out of one of these strats in JNPR, so might as go directional.
TWTR Dec 16th 15 short puts; .60 at the mid (I'm more fixated on the 14 strike, since it's around long-term support). If I get a dip post earnings (10/27) that "juices up" the 14, I'll pull the trigger on that. Roll, roll, roll until a buyout rumor or until a buyout actually occurs. If it pops higher, I shrug my shoulders and say, "You doofus. You waited too long." TWTR has good metrics for my standard short strangle or iron condor, but I'm fixated on going directional here with the repetitively resurfacing buy out rumors which may, at some point in time, result in an actual buy out ... .
GRPN: Dec 16th 4.5 short puts: .31 at the mid. Earnings 10/26. That shortie is quite close into current price in the scheme of things, so this one would be a crap shoot. Either it takes off to the upside or look forward to getting put the stock at 4.5 (minus the credit you received on the front end). The good thing is that background IV is always fairly high, which would help with selling calls against.
JNPR Dec 2nd 21 short puts; .45 cr at the mid (strike around long-term support). Earnings (10/25). I generally do these earnings plays with a short strangle or iron condor, but just can't get squat out of one of these strats in JNPR, so might as go directional.
TWTR Dec 16th 15 short puts; .60 at the mid (I'm more fixated on the 14 strike, since it's around long-term support). If I get a dip post earnings (10/27) that "juices up" the 14, I'll pull the trigger on that. Roll, roll, roll until a buyout rumor or until a buyout actually occurs. If it pops higher, I shrug my shoulders and say, "You doofus. You waited too long." TWTR has good metrics for my standard short strangle or iron condor, but I'm fixated on going directional here with the repetitively resurfacing buy out rumors which may, at some point in time, result in an actual buy out ... .
GRPN: Dec 16th 4.5 short puts: .31 at the mid. Earnings 10/26. That shortie is quite close into current price in the scheme of things, so this one would be a crap shoot. Either it takes off to the upside or look forward to getting put the stock at 4.5 (minus the credit you received on the front end). The good thing is that background IV is always fairly high, which would help with selling calls against.