PCLN announces earnings tomorrow before market open, so look to put on this play before today's close.
As noted in my post early this week regarding this week's earnings play prospects, PCLN's options are somewhat illiquid, so look for a fill of any setup at or above the mid price and resist the urge to chase price for a fill ... . You can naturally play with the width of the wings and/or or the width of the short option strikes to give you a setup that fits your risk tolerance.
Here's the metrics for the basic setup:
PCLN Feb 26th 947.5/957.5/1212.5/1222.5 Iron Condor
Probability of Profit %: 71%
Max Profit: $341/contract (that's the mid price; I regard the likelihood of a fill there quite small)
Buying Power Effect: $160/contract (not sure that's correct, but it's what the software's telling me if you shoot for a fill a 3.41)
Break Evens: 954/1216
As noted in my post early this week regarding this week's earnings play prospects, PCLN's options are somewhat illiquid, so look for a fill of any setup at or above the mid price and resist the urge to chase price for a fill ... . You can naturally play with the width of the wings and/or or the width of the short option strikes to give you a setup that fits your risk tolerance.
Here's the metrics for the basic setup:
PCLN Feb 26th 947.5/957.5/1212.5/1222.5 Iron Condor
Probability of Profit %: 71%
Max Profit: $341/contract (that's the mid price; I regard the likelihood of a fill there quite small)
Buying Power Effect: $160/contract (not sure that's correct, but it's what the software's telling me if you shoot for a fill a 3.41)
Break Evens: 954/1216
Comment:
I'm a big scaredy cat, so here's a revised setup that's a little wider: Feb 26th 940/950/1240/1250; POP%: 77%; Max Profit: $245 (at the mid); BPE: $716; BE's: 947/1243.