Today my account is down slightly due to PCLN being down a lot. I took a chance that the stock will stay the same or go up this week as it has done for many prior weeks but this week its down. There's some big earnings reports tonight after close and I am playing some straddles/strangles today. I am expecting a large move in GOOG and ISRG. ISRG's option prices are not all that high so I'm wondering why. Normally they move a great deal after earnings so I have straddle spreads only $10 points away from the current stock price and $20 away from the stock price. I am actually selling put credit spreads in GOOG far away from the stock price and purchased option spreads closer to the stock price. Earnings are a good way to make some extra money very quickly. I often times take advantage of the large premiums and sell far out of the money spreads. I am doing that on GOOG but sometimes I like to buy spreads closer to the money. For example on ISRG the stock price is $421.50. I bought the 410/405 put spread and the 430/435 call spread. I only paid a total of $3.10 on this position and as long as the stock goes down under 405 or up over 435 I will make a $190 profit. I've seen ISRG move $80+ in a day so this seems like a good opportunity. The risk is the stock stays pretty flat after earnings. Just another way to add a little excitement in my day. Last night I bought the 57.50/55 Put Spread in EBAY after checking the charts. The stock had been up a lot and I expected a decrease after earnings. The stock is down 3.90 today and I already locked in a profit of $145. I normally don't do directional debits but based on the information in front of me I put that on yesterday. I repositioned a lot of my positions. Tomorrow will be a very important day. My account currently is down $229 today.
Jonny
Anyone looking for some ways to get started collecting option premium using the best software please Click Here! or to find undervalued options Click Here!
No comments:
Post a Comment