Thursday 1st of February - the alternative triple witching hour with GOOGL, AAPL and AMZN

Discussion in 'Options' started by TrustyJules, Feb 1, 2018.

This Thursday 1st February 2018 I am:

Poll closed Feb 2, 2018.
  1. Totally selling premium on the three stocks for $244 per straddle

    0 vote(s)
    0.0%
  2. Totally buying premium on the three stocks for 244 per straddle

    0 vote(s)
    0.0%
  3. Staying out of this alltogether, buying pop-corn and watching the show

    2 vote(s)
    100.0%
  1. So after the close the three tech majors will report earnings; if we follow the "logic" of the TastyTrade recommendations to sell premium this would be the moment to 'go for it the Karen super-trader way'. The Friday straddles are trading at:

    AMZN - $103.50 - predicting a range of move ~7%
    AAPL - $ 8 - predicting a range of move ~ 5%
    GOOGL - $ 60.50 - predicting a range of move ~ 5%

    So you could sell the ATM straddle for the three (with AAPL x 10 otherwise its a bit skewy) for $244

    So who is willing to trust Mr. Market and go for it?

    Note to significance seekers: The post is meant humorously, I am long all three but will be closing out before the bell. Its not pessimism, the positions (bar AAPL) are up too much for a nasty turn of events.
     
  2. Overnight

    Overnight

    You options guys are crazy.
     
  3. truetype

    truetype

  4. FSU

    FSU

    So, the prices I see for the straddles at the close were,

    Amzn, 83.50
    Aapl 7.20
    Goog 54

    Their movement after hours so far are

    Amzn up a high of 89
    Aapl up just under 6 points
    Goog down as much as 60, but rallied back quite a bit

    Overall the options did I pretty good job of predicting the moves so far. If you had bought the straddle on all of them, you would have made money if you traded the stock after hours, but selling the straddle still may work out.
     
  5. Well premium sellers made a bundle - particularly on Amazon if they had the guts to go short. Depending a little on where you got in and out it could be break even on GOOGL or AAPL but overall you should be up in the region of 180$