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Ironcondor

TRADE IDEA: DKNG SEPTEMBER 18TH 25/50 SHORT STRANGLEMetrics: Rank/Implied: 9/96 Short Straddle Price/Stock Price Ratio: .257/25.7% Max Profit: 1.70 ($170)/contract; .85 ($85) profit at 50% max Max Loss: Undefined Break Evens: 23.30 on the put side (2 times the expected); 51.70 on the call (>2 times the expected) Delta/Theta: -1.67/5.90 Defined Risk Alternatives: September 18th 20/25/50/55 iron condor, paying 1.03 (.51/$51 profit at 50% max), with break evens at 23.97/51.03, nearly 2 times the expected on the put side, > 2 times the expected on the call. September 18th 20/35/35/50 iron fly, paying 7.73 (1.93/$193 profit at 25% max), with expected move break evens at 27.27/42.73. Comments: High background implied at 96 with the at-the-money short straddle paying 25.7% of the stock price. Announces Friday before market open, so look to put on a play in the waning hours of Thursday's session.
NASDAQ:DKNG
by NaughtyPines
1
OPENING: ROKU SEPTEMBER 18TH 130/225 SHORT STRANGLE... for a 7.71 credit. Notes: Earnings, high implied. There is some call side skew here that I occasionally try to accommodate in some fashion, but just went plain Jane delta neutral at around the 17 delta. Defined Risk Alternatives: September 18th 130/140/215/225, paying 3.63 at the mid as of the writing of this post, delta/theta 2.98/4.49. September 18th 130/135/220/225, paying 1.65 at the mid as of the writing of this post, delta/theta 1.41/2.41.
NASDAQ:ROKU
by NaughtyPines
OPENING: TWTR AUGUST 21ST 32.5/45 SHORT STRANGLE... for a 1.74/contract credit. Notes: High rank/implied with earnings in 1. Looking to take profit at 50% or otherwise manage on side approaching worthless. Defined Risk Alternatives: The August 21st 26/31/45/50 iron condor, paying .98. Generally, I like to get one-third the width of the widest wing out of these, but the call side is pesky with strike granularity (i.e., strikes widen to 5-wides at >45). The only weekly with one wides above 45 is the July 31st, where the directionally neutral 30/34/41/45 is paying 1.38.
NYSE:TWTR
by NaughtyPines
Update: I'm just slow but hey it workedSo I called out a potential UVXY trade and I missed the one indicator that every trader relies on Resistance However I mentioned that I was wanting to sell premium, and this retraction was actually beneficial to my theta gang strategy on my paper trading account 5pt iron condor at strike 85/90 call strike 45/40 puts strike It gained $50.00 P&L today bringing me to p&l open of (22.50) Theta: 9$ per day $2500 bp effect profit zone= 20-25% of max p&l P&L % (-%1.44) Re iterating my ridiculous price target yesterday Id want UVXY to stay between $55-65 until market close on friday.
CBOE:UVXY
by UnknownUnicorn7114726
OPENING: IWM APRIL 17TH "DOUBLE DOUBLE" 136/146/2X172/2X177... for a 1.79 credit. Notes: Here, going defined in one of the smaller accounts with a "double double" iron condor. The call side short aspect is at half the delta of the put side short aspect, with the call side spread half the width, but doubled in contracts to accommodate skew. I'm not collecting one-third, but want to avoid potential whipsaw in this high volatility environment. The naked ratio'd 146/2x 172 is paying 2.85 for those not wanting to give up premium to the wings.
AMEX:IWM
by NaughtyPines
$AAL Iron CondorHaven't posted on here in a bit. Figured I would share some plays that take advantage of the recent spike in volatility. Airlines have taken an absolute beating, and if you put a gun to my head I would say that will continue. However I don't see it happening at the same pace and we should get a couple green days mixed in. The high IV has provided a very wide profit zone here, a range equal to nearly 50% of the underlying with only 3 weeks til expiration. Buy: 3/20 24 Call Sell: 3/20 22 Call Sell: 3/20 14 Put Buy: 3/20 12 Put Net Credit: $52 Max Loss: $148
NASDAQ:AAL
by DefineRisk