ALTB – Closed IBM Earnings Trade – Dual Calendar JAN20/FEB3 162.50/172.50
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
ALTB – Open IBM Earnings Trade – Dual Calendar JAN20/FEB3 162.50/172.50
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.
ALTB – Closed CRM Earnings – Nov18/Dec23 68/79 Dual Calendar
CRM jumped a bit higher than expected but settled down after the open. We ended up hitting close to our exit targets but there was actually more room to make money in the trades.
This version of this trade had a higher return but that was mainly a factor of where the strikes were vs the price at the time of exit. Overall I am very happy with both versions of the trade.
ALTB – Closed CRM Earnings (Ver2) – Nov18/Dec23 69.50/78.50 Dual Calendar
CRM jumped a bit higher than expected but settled down after the open. We ended up hitting close to our exit targets but there was actually more room to make money in the trades.
The original
ALTB – Open DIS Earnings Trade – Dual Calendar NOV11/DEC2 92/98
The market is sorting itself out after the surprise election. There have been some wide swings the last few days and that isn’t likely to be over soon. We have a balance of risks of sharp movements up or down right now. In the long run, the normal market risks will reassert themselves and that great risk will be to the downside.
ALTB – Open FDX Earnings Trade [correction]
FDX (Fed Ex) has their earnings this evening. This is causing elevated IV in the short term options. The trade we are taking is similar to the ORCL earnings trade we took last week. We are using a short call/put on this Friday’s expiration to capture profits and a long call/put on the Oct 21 expirations to protect ourselves.