NKE announces earnings on 12/22 (Tuesday) after market close, so look to put on your play before NY close.
Here's the standard short strangle setup:
Dec 31st 118/141 short strangle
POP%: 75%
Max Profit: 1.25 credit ($125)/contract
BPE: ~$1572
BE's: 116.75/142.25
Note: I ran an iron condor setup, but it looks like it will generate less than a .50 credit/contract ... . I would also note that it may be less than ideally liquid, so you may want to shoot for a higher fill price if the opportunity presents itself.
Here's the standard short strangle setup:
Dec 31st 118/141 short strangle
POP%: 75%
Max Profit: 1.25 credit ($125)/contract
BPE: ~$1572
BE's: 116.75/142.25
Note: I ran an iron condor setup, but it looks like it will generate less than a .50 credit/contract ... . I would also note that it may be less than ideally liquid, so you may want to shoot for a higher fill price if the opportunity presents itself.
Note
Post-announcement, it looks like NKE took a minor bounce that is well within my short strikes. My guess is that with the upcoming split, there may be less buying interest than usual post-announcement and that buyers are potentially waiting to pounce on it post split ... .Note
Out for 50% max profit. Gotta love the quickies ... .
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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.