EXPE May 2015 Calendar

[SeanM]

Earnings 4/30 AC.  

 

I entered a couple of 2 week calendars today.  Long May monthly, short May wk1.  98P @ $0.38, 98.5P @ $0.35.  

 

Based on my notes from a handful of other cycles, as well as notes from another member (almost certain it was Yowster, but I can't find the thread) these calendars fluctuated wildly in a range of 0.69% – 1.43% of the stock price on a per spread basis, with prices generally highest 2 days before ER.  At the current price of $99, that implies a range of $0.68–$1.42 per spread.

[equus]

Interesting, don't think we've ever done EXPE as an official Steady Options calendar trade.

[SeanM]

Interesting, don't think we've ever done EXPE as an official Steady Options calendar trade.

 

No, we have not.  Just straddles.

[Yowster]

EXPE is one I'm watching.  I'm looking at the 100 call calendar now - the mid is 0.30 and there is an unfilled bid at 0.35, which is not a good thing IMO as I don't like having to go more than a few cents away from the mid when buying & selling these low cost spreads.  Based the charts in the weekly discussion thread I could see the mid getting to the 0.70-0.75 range, but with lower options volume I must feel confident that I can open and close near the mid before I open a significant number of spreads (and I'm not sure EXPE will behave like that).  Note that the other lower cost spreads that show the potential for big gains the week of 4/27 (GPRO, TWTR, YELP, GILD) all have much higher options value so getting the prices near the mid is much more likely.

Edited April 22, 2015 by Yowster

[SeanM]

Good input.  Thank you!

[4REAL]

got filled yesterday  97.50C calendar (-May01 + May15) @ 0.30

 

 

 Hope spread windens before tomorrow night

Edited April 29, 2015 by 4REAL

[4REAL]

closed EXPE 97.50C calendar  => 16.7% gain after comm

 

closing near mid seemed no problem

getting in (near mid) was much more difficult

Edited April 30, 2015 by 4REAL