SNX Earnings Play

28 Şub

SNX is in a medium term uptrend, squeezing (bullish) and has earnings in 3 weeks. Options volatility is in the sweet spot and should rise a good 10% into earnings. Average 21 day price gain over the last 4 quarters has been $4.55. I'm looking to buy call butterflies centered at the $105 strike. I think I'll also look at the unbalanced downside PUT fly for a credit (Buy 1 100, Sell 3 @ 95, Buy 2 @ 90). Basically, a long PUT butterfly + a short PUT credit spread to pay for it.

28 Şub

Not

Price is also bouncing off the anchored VWAP and may try to close the recent hole left by the gap down.