ROKU - Iron Condor, short 3 day expiration

ROKU options are selling at a very high premium (time value) due to very high IV%. To take advantage of the high premium I opened an Iron Condor. I chose an iron condor because I don't have a strong bias (bull/bear). This strategy provides a little more cushion whether it moves one direction or the other. I would have chosen a credit spread strategy if I did have a strong bias.

3 Days till expiration. 56/66 Calls & 45/35 Puts. Premium $3.58 per spread.
ROKU price at order execution $50.02
Break even $59.58 & 41.42

Net Spread: .0034 .0400 -.0514 .0048
IV% on each contract is between 219% - 260% (versus 61%)

交易進行: Earnings and forecast occurred. Earnings good, forecast disappointed. Stocked fell. However, as expected, IV% dropped by 150%. Even with big price drop, trade is still working out in my favor.

To be safe and remove risk on the books, I am attempting to close the trade early. No one would pass on a $1.50-1.70 credit per option spread for a 1 day trade. That is a great trade. If I wait the 3 days, I could keep the $3.58 received OR potential loss money.
手動結束交易: Closed positions for a $1.90 debit. 3.58 - 1.90 = 1.68 ($168/per contract) gain in less than 24 hours.
@JLJ002500 That was a very close trade, but good for you.
JLJ002500 themdtrader
@themdtrader, It definitely had risk. But the IV% was so high leading up to the earning reports making the option premium outrageously expensive. It is almost a certainty that the IV% would drop substantially following the news no matter if the news was good or bad, which it did (dropped about 160%). That greatly reduced the premium allowing me to buy back the options for much less than I sold them.

I have found capitalizing off of others fears leads to a successful trade more times than it doesn't.
themdtrader JLJ002500
@JLJ002500, I feel you man, and I get it. We can't get any reward without taking risks.
ZH 繁體中文
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
AR العربية
HE עברית
首頁 股票篩選器 外匯篩選器 加密貨幣篩選器 全球財經日曆 如何運作 圖表功能 網站規則 版主 網站 & 經紀商解決方案 小工具 圖表庫 功能請求 部落格 & 新聞 常見問題 幫助 & 維基 推特
個人資料 個人資料設定 帳戶和帳單 我的客服工單 聯絡客服 發表的想法 粉絲 正在關注 私人訊息 在線聊天 登出