We made an earnings play and bought May/June $80 and $90 double calendar for $2.60. The stock ripped higher on major short covering which seems to be coming to an end. Regardless, this was an earnings play and I don't want to stay in the game forever. The spread is marked $2.70 as of this writing, so I am placing the order for $2.60 (original cost) to close the trade for scratch and move on. Spreads are wide, so it may take a while for the order to execute.
No loss, no gain.
About Me
- Fahad Khalid
- Chicago, IL, United States
- I have Masters in Business (Accounting and Finance 2003) from Michigan State University. I have been trading the market since 1998. Prior to picking up trading as a full-time career in 2008, I was a management consultant at Alvarez & Marsal and Conway MacKenzie for four years. I provided turnaround, crisis management and restructuring services to financially distressed firms. Prior to working in turnaround, I worked in Audit & Assurance at Deloitte & Touche for two years. Trading in the market has always remained my side business ever since I started college. 90% of the time, I trade through options. I love volatility skews and positive Theta plays. While I make a lot of directional bets, in general my favorites are to take advantage of high implied volatilities through calendar or butterfly spreads and vertical credit spreads. I never buy straight calls or puts and I do a lot of exotic multi-leg option trades.
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