A high implied vol rank/implied vol, earnings volatility contraction play with no downside risk ...
Metrics:
POP%: 72%
Max Profit: $101/contract
Max Loss/BPE: $199/contract
BE at 111.01 (no downside risk).
Notes: A good finish remains between the short strikes (95.5/113). Attempting to avoid getting "AMD'd" here ... . Will look to take profit at 50% max. I'm describing it as "preliminary," since price may move around a bit during tomorrow's NY sesh requiring slight adjustments to the setup.
Metrics:
POP%: 72%
Max Profit: $101/contract
Max Loss/BPE: $199/contract
BE at 111.01 (no downside risk).
Notes: A good finish remains between the short strikes (95.5/113). Attempting to avoid getting "AMD'd" here ... . Will look to take profit at 50% max. I'm describing it as "preliminary," since price may move around a bit during tomorrow's NY sesh requiring slight adjustments to the setup.
Comment:
Eventually went with the May 19th directionally neutral 91/94/115/118 for a .97 credit.
Comment:
Covering short put side for a .03 debit (near worthless). Scratch point is .94. Will look at short call side next week to see where this rocket lands ... .
Comment:
Actually, the May 19th 112/115 short put vert is still paying decent, assuming that these prices are around tomorrow. The 112/115 pays .42 at the mid, which would turn this into a 112/115/115/118 iron fly. Keep in mind that I'm not going for a perfect finish here at the body of the fly (115), just going for loss mitigation ... .
Comment:
Filled the May 19th 112/115 for .41 at the open; post-rip, it's worth .09. Lol. I'll look to take it off at near worthless.
Comment:
At this point my call side is at max loss (2.03); if I can close out that short put vert for .05 or less, my total loss will be ~1.67, assuming I just throw in the towel here (which is my plan, unless the trade Gods get this to magically retrace by $10 or so by expiry).
Comment:
Covering the May 19th 112/115 for .05 here. I have an order in to take the broken call side off for max loss (the width of the spread minus the credit received for that side). There is a touch of intrinsic left in it; I'll deal with it next week if the order doesn't fill with 4 DTE or so ... .
Comment:
I meant, "extrinsic" value, not instrinsic ... . Lol.
Trade closed manually:
Covering the May 19th 115/118 for a 3.03 db, so loss for the entire trade is .97 cr. - .03 db + .41 cr -.05 db - 3.03 db = 1.73.