Jump to content
SteadyOptions is an options trading forum where you can find solutions from top options traders. Join Us!

We’ve all been there… researching options strategies and unable to find the answers we’re looking for. SteadyOptions has your solution.

Leaderboard

Popular Content

Showing content with the highest reputation on 07/13/16 in Posts

  1. Understanding options software is part of the learning curve, but it's well worth the time in the long term. You might also consider the ONE software, our members also have discounted prices - P.S. Kim is good enough, I'm a simple guy..
    1 point
  2. I think your range of profitability pretty much matches the implied move, which is what I would expect. However, your max gain of 5.00 seems high, assuming you close the day after earnings announcement. Here is how I would analyze the post-earnings prices: IBM's options normally have IV of about 17.5%, so post earnings I would expect the Aug monthlies to have IV of 17.5% and the soon to expire weeklies still a big higher, say 20%. Plugging these values into an option price calculator, I'd expect the day after earnings ATM call calendar to be worth about 1.90 if stock price is right at the strike - so with your triple structure, I think the max next day profit is closer to $3.00 if IBM stock price is right at your middle strike (and around $4.00 if its near your middle strike on short leg expiration day). This would still represent a very nice gain. However, the key to me for these hold through earnings calendars is stocks that have a history of staying within the implied move - and with IBM over the last few years is has had quite few out-sized moves, so its more of a gamble than its track record of staying within the implied this cycle.
    1 point
This leaderboard is set to New York/GMT-05:00
×
×
  • Create New...