AMZN calendar

[Vancouver 54]

BTW, I also entered AMZN P325 (long Nov 22, short Oct 24) @ $2.45 a few days ago. 

[tjlocke99 18]

Thanks Vancouver.  This info helps, but it definitely helps for the record to state what price the underlying was trading at that the time you bought the options.

[Kim 7,509]

2.45? The current mid is 2.90. This was a very good fill.

 

Historically, 1.25% for the double calendar was a good price. So around 4.00 or 2.00 for a single calendar. But this is for 3 week calendar, and the current one is 4 weeks. So 2.50 or below would definitely be a good entry point.

[Vancouver 54]

Yes, it went up nicely. But the trade is about 1 week old by now.

[4REAL 109]

Hi Vancouver,

 

Is the earnings date for AMZN already confirmed ?

Since the short leg of your calendar expires Oct 24

or are you planning to close a few weeks before earnings ?

 

thanks

[Vancouver 54]

Closed the spread at $3.22 today. With volatility increasing, I decided to collect the gains. The trade ended up as a nice gain (+30%), but I held it for more than 2 weeks, and the stock barley moved.

At the same time, given my entry price ($2.45) the break even points as of today are at $295 and $335 which give a nice margin. 

It seems to me that playing these spreads during the 2 weeks before earnings usually would give better results, but at the same time it is harder to get the price we want.

[SeanM 29]

Thanks for the follow up.