Earnings journal

Here's the SBUX trade (post-report) from yesterday. I forgot to post it here. Crazy move. 5.65 to 7.77 (marked as I type this).

 

I have a soft delta bet on SPOT coming your way! This one is a doozy.
Long 118/128/138P Fly @ 2.24 of risk.
AMZN just released their free music streaming service last week. There is no way SPOT is going to be able to avoid this during their 2019 guidance. The implied move is pretty steep (6.9%) so the butterfly in my opinion is really cheap!

 

Perhaps run the put and call combos. Your put fly and an overlapping call fly (136/146/155).

 

I don't want to add any long deltas here. Are you bullish?

 

No, I'm not. I don't think it's a good idea to straddle the combos unless you work out even money for the upside. Not worth the gamma risk at zero outlay.

 

Monday Night! I hope you aren't betting on them to to gap at the open Monday!

 

Some gamma scalps for next week going into earnings.
SQ 71.5 straddle @ 5.10
ATVI 48 straddle @ 3.52

 

Its a big week team!!! We got lots to choose from so lets spread the risk like PB and J. I think we can hit double digits this week if we take enough bets. @oldmonk hopefully you can take the time to really drill down on some of these names with me. I'll be @ the terminal all week 8am ET-8pm ET and will provide some fundamental information that we can go through.

I am still going to be taking soft delta bets(directional fly's) on high ImpMv/AvgJump in the direction of the fundamentals/data.

Rain or shine i'll be posting my (photo shopped) PNL for the week @ the end. April has been my best month since JAN(thanks to CELG buyout) and I am looking forward to finishing on a strong note!

Good luck everybody!!!!!!!!!!!

PS. who thinks @srinir is going to make an appearance this week?

 

SPOT pulled down enough for me to exit the fly with a profit. Closed 118/128/138 for 2.84

 

Hey TBS, are you doing anything on CI later this week? If so, how would you play it? Release is on Thursday before the open.