This open brought the trade right down through our $55 strike and around the open gave us an improved fill on our target exit order. The brokerage is obligated to get us the best price they can at the open and our order was filled at $2.25, but I did see high prices for a few moments.
AMBA has an earnings announcement after the market closes on Tues, June 6th. The high IV in the short term options gives us an opportunity to place a dual calendar that benefits from the massive IV drop we will see after the announcement is done.
AMZN has its earnings announcement tonight. This is causing the IV in the near term options to become highly over priced. Our normal Dual Calendar trades are not working due to odd effects in the IV structures, but we took this AMZN Iron Butterfly position as an alternate earnings trade.
CMCSA has its earnings tomorrow before the open. The IV on the Friday
The IV dropped further than expected in both SLB and this IBM trade. In this case, it put us in a small loss after we closed. A bit disappointing
IBM has an earnings announcement after the close on Thursday night. This is driving the IV on the JAN20 options to high levels.
We are using a set of short options that expire on Friday to capture a profit as the IV collapses after the announcement along with a set of long options expiring on FEB3 to protect the position.