Shared by
Financialfreedom5280
Going into NFLX earnings with volatility elevated in the stock I bought (2) the 107 / 100 / 93 butterfly for 1.27. I was expecting a down move as NFLX has 3 of the past 4 earnings cycles. IV was around 90% and I was short volatility expecting it to come to about 50%. After earnings the stock traded down to the 97 area and I closed the trade on the open for a $300 profit.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2016-04-18 12:43:39 | APR4 16 93 PUT | buy | $0.9200 | long |
| 2016-04-18 12:43:39 | APR4 16 100 PUT | sell | $2.580 | short |
| 2016-04-18 12:43:39 | APR4 16 107 PUT | buy | $5.510 | long |
| 2016-04-19 07:59:09 | APR4 16 93 PUT | sell | $0.8600 | long |
| 2016-04-19 07:59:09 | APR4 16 100 PUT | buy | $4.150 | short |
| 2016-04-19 07:59:09 | APR4 16 107 PUT | sell | $10.170 | long |
| 2016-04-19 07:59:09 | APR4 16 93 PUT | sell | $0.8600 | 0 |
| 2016-04-19 07:59:09 | APR4 16 100 PUT | buy | $4.150 | 0 |
| 2016-04-19 07:59:09 | APR4 16 107 PUT | sell | $10.170 | 0 |
Leave a comment about this trade!
You need to log into your Tradervue account to leave a comment. If you don't have one,
it takes
just a few seconds to sign up, and it's free!