CRM -- EARNINGS PLAY: MAR 4TH 54/72 SHORT STRANGLE

23 Şub 2016

CRM announces earnings tomorrow after market close, so look to put on a play in the waning hours and minutes of the NY session to take advantage of any volatility crush that occurs post earnings announcement.

Here's the setup, which naturally might have to be tweaked depending on how much CRM moves tomorrow intraday:

March 4th 54/72 Short Strangle
Probability of Profit: 75%
Max Profit: $122/contract
Buying Power Effect: Undefined

Notes: I played with doing a defined risk strategy, but I just can't get the 1.00 credit/contract I would want out of the play.

24 Şub 2016

Not

Filled a slightly tweaked setup -- a March 4th 55/70 short strangle for a 1.27 credit. Post-announcement, CRM's up to about 68.00. Fingers crossed that it retreats somewhat from that price.

25 Şub 2016

Not

Peeled off the short put side for a .05 debit.

1 Mar 2016

Not

Another "too close for comfort" roll: rolled the 70 short call to the March 18th 71 for an additional .55 credit and sold the March 18th 62 put for an additional .53.

8 Mar 2016

Not

Covered today for a 1.48 debit. From head to toe: Credits: 1.27 + .55 +.63 = 2.45; Debits: .05 + 1.48 = 1.53. 2.45 - 1.53 = .92/contract. After fees/commissions a .74/contract ($74/contract) profit.