rknight52 5:44 am on Friday, February 26, 2016

PANW and SPXW in danger today.

Took what looked like a safe PANW IC yesterday before earnings, then the pre-release junk happened and the call side will be threatened today. @Jeff, any thoughts on salvaging this?
Also have a $SPXW 1960/1970 call spread that looks threatened.
With the PANW, I was very aware of the possibility of this going bad, as all earnings plays are somewhat of a surprise, but we all hate to lose anything. Just talking out loud here and thinking what to do about these today.

1strangealien 5:54 am on Friday, February 26, 2016

I’m in the same PANW boat with ya, I’m guessing we’ve simply lost on this one but would be interested also in any salvage ideas. We’ll see how it trades after the open, you could buy back the short call and let the long call run but it’s moved a lot already, is there any juice left? And as soon as I buy back the short call the stock will sell off to zero lol.
- Jeff 5:58 am on Friday, February 26, 2016
  
  This is another option, but one I never do… mainly because when I have tried I suck at the execution. Also because I prefer to be naked short then naked long. But that’s me.
Jeff 5:54 am on Friday, February 26, 2016

With PANW, you can try a roll, but it will be difficult with an ITM spread. If you’re comfortable with going naked, then you can sell the long calls near the open and give yourself a fairly decent entry point for either short-stock assignment or a naked roll later in the day. I will likely take the loss on this one, but will consider these options.
rknight52 5:58 am on Friday, February 26, 2016

I’ll probably just take my lumps on this one (PANW). I suppose we could see a surprise blow-off after the open. That wouldn’t be the first time for a big sell-off after the earnings is digested. We can only hope. I did take it at 145 yesterday instead of 140, so there is a little hope that it could still be profitable.
- Jeff 6:04 am on Friday, February 26, 2016
  
  Mine is 144/149
  - 1strangealien 6:08 am on Friday, February 26, 2016
    
    I have 144/149 also and will probably just take my lumps as well.
Jeff 6:03 am on Friday, February 26, 2016

The SPX spread is harder to advise on. With past experience I avoid getting ITM on these, especially on expiration day. You can probably get out for around 4.00 on the open but if this is a face-ripping rally today you may end the day with max loss. You can also play the swings and leg out, but as I said above I usually suck at that.
- rknight52 6:12 am on Friday, February 26, 2016
  
  I can’t watch it closely enough today to leg out. I’m also really bad at that and with theta disappearing as the day progresses, I’m sure I could be the “biggest loser” today if I try that. I may try to roll it and hope (not a strategy) that volatility goes back up and the index back down.