2019-02-12 21:31:25
-evaluated a few positions before entering into this trade: looked at long calls, put credit spreads and strangles
-EA gapped down off earnings on 2/6; caught some momentum and then gapped up the morning of 2/11 off BofA (and other firms) upgrade and price target
-I was looking to buy calls for a gap and go, but EA sold off the entire day and I didn't want to buy calls into weakness especially if there was a chance the gap would fill
-IVR continued to be elevated (68%) so the next option was to sell a put credit spread but selling one below the support level needed to be safe (90/85 put credit spread) didn't bring in 1/3 the width of the spread
-settled on going with a strangle skewed to the upside (believe delta was +10) as there is a high chance EA could run up off the gap up after some consolidation and I wanted to reduce the likelihood of getting tested on the upside early in the trade
2019-02-13 01:21:06
-wanted to get long on 2/11 but action stock traded down
-after hours on 2/11, there was news that EA game Apex reached 25m users in first week
-stock gapped up (again), then traded down (again), but then sweeper activity went off again
-bought 5 lots as it was making approach for VWAP and sold 3 at the high of the spike
-stock consolidated in the upper middle of the pivot zone after entry (didn't monitor close enough after entry as it price compressed into tighter range over 2 hours and then it brokeout)
-would like to let the remainder run and possible look to sell the 125C to reduce risk
-target 109.50 for exit
2019-02-14 21:45:07
-exited strangle today for locking in about 40% of the premium collected for an 8% ROC in 3 days
-I set this up conservatively to the upside (and trade didn't even come close to testing either side - I wonder if this has anything to do with expiration week, aside from the earnings release)
-STILL holding 2 lots of the 120 calls (there was a 2.2M block that went off in this name today)
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2019-02-11 13:30:14 | MAR15 19 125 CALL | sell | $0.4400 | short |
2019-02-11 13:30:14 | MAR15 19 90 PUT | sell | $1.600 | short |
2019-02-12 11:18:59 | MAR15 19 120 CALL | buy | $0.8700 | long |
2019-02-12 15:25:41 | MAR15 19 120 CALL | sell | $1.430 | long |
2019-02-14 10:11:13 | MAR15 19 125 CALL | buy | $0.3800 | 0 |
2019-02-14 10:11:13 | MAR15 19 90 PUT | buy | $0.8700 | 0 |
2019-02-19 10:06:39 | MAR15 19 120 CALL | sell | $0.8000 | 0 |
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