Earnings trades

Discussion in 'Options' started by IV_Trader, Jan 10, 2006.

  1. Neil , its not so simple as its looks...
    I will close WEBX position today (almost did) and will NOT reverse it to short combo to go for iv crash after the earnings. Maybe I will put a reverse calendar (depends what the FEB to MAR vols ratio will be tomorrow).
    PCLN didn't start the run yet (but it will)
     
    #61     Feb 1, 2006
  2. fader

    fader

    hi IV_Trader - great work on the trades - i am wondering if you are delta neutral with this structure on WEBX or this position looks like (slightly) negative delta? - also if you are or were delta neutral, since you are long "cheap" gamma, would it make sense to see if there is a knee-jerk reaction on the earnings tomorrow and get out then, just before/as IV starts to fall, rather than close today? thx.
     
    #62     Feb 1, 2006
  3. it was just a random screen shot , I did adjust delta later.
    Sometimes I do go long into the earnings , but not in this case ; I made very good on WEBX and will move on to others.
     
    #63     Feb 1, 2006
  4. today's WEBX action...
     
    #64     Feb 1, 2006
  5. fader

    fader

    ok thx IV, nice work on this trade.
     
    #65     Feb 1, 2006
  6. hi IV ,
    you normally take positions with less than 10 days before option expiry and an EPS announcement within that 10 day time period .
    can i ask why in plcn and webx you decieded that greater than 10 days before exp was still a good trade ?

    cheers
    neil
     
    #66     Feb 2, 2006
  7. trades i'm looking at for this month :
    CLHB
    PSTI
    CWTR
    MIK
    WIND
    GTI
    VTIV
    WFII
    JILL
    JUPM

    not had time to look at the vols' and volume info , but hopefully i can do some research this week .
     
    #67     Mar 6, 2006
  8. go with volume filter first (average min 2k contracts a day) ; only a few tickers from your list will pass it.
     
    #68     Mar 6, 2006
  9. well a grand total of zero tickers passed the 2k a day volume test :-(
     
    #69     Mar 8, 2006
  10. LOL.
    But I actually took position (long combo) on CWTR , not bad volume and spread is 5/10 cents. You also missed some good volume stocks that reported after your post (MATK , MYOG , LIFC)
     
    #70     Mar 8, 2006