CRM announces earnings tomorrow after market close, so look to put on a play in the waning hours and minutes of the NY session to take advantage of any volatility crush that occurs post earnings announcement.
Here's the setup, which naturally might have to be tweaked depending on how much CRM moves tomorrow intraday:
March 4th 54/72 Short Strangle
Probability of Profit: 75%
Max Profit: $122/contract
Buying Power Effect: Undefined
Notes: I played with doing a defined risk strategy, but I just can't get the 1.00 credit/contract I would want out of the play.
Here's the setup, which naturally might have to be tweaked depending on how much CRM moves tomorrow intraday:
March 4th 54/72 Short Strangle
Probability of Profit: 75%
Max Profit: $122/contract
Buying Power Effect: Undefined
Notes: I played with doing a defined risk strategy, but I just can't get the 1.00 credit/contract I would want out of the play.
Note
Filled a slightly tweaked setup -- a March 4th 55/70 short strangle for a 1.27 credit. Post-announcement, CRM's up to about 68.00. Fingers crossed that it retreats somewhat from that price.Note
Peeled off the short put side for a .05 debit.Note
Another "too close for comfort" roll: rolled the 70 short call to the March 18th 71 for an additional .55 credit and sold the March 18th 62 put for an additional .53.Note
Covered today for a 1.48 debit. From head to toe: Credits: 1.27 + .55 +.63 = 2.45; Debits: .05 + 1.48 = 1.53. 2.45 - 1.53 = .92/contract. After fees/commissions a .74/contract ($74/contract) profit.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.