thomberg1201 6:08 am on Thursday, March 30, 2017

LULU-NONO

LULU-NONO

geewhiz112 6:17 am on Thursday, March 30, 2017

CUTECUTE
Jeff 6:19 am on Thursday, March 30, 2017

What is TastyTrade doing about it? Take the loss or manage it? Kind of surprised they recommended that. Its moves have been so large so often, including last 2 quarters +15% and -11%. I was actually considering to BUY the straddle.
- thomberg1201 6:38 am on Thursday, March 30, 2017
  
  Nothing yet from TT. At the end of the day I bought a 60 put that will make this manageable. There were a couple trades looking for a small move.
  - Jeff 6:43 am on Thursday, March 30, 2017
    
    EXCELLENT job protecting yourself. Did they say that it had been “quiet” on last two quarters? My data show the opposite.
    - thomberg1201 6:49 am on Thursday, March 30, 2017
      
      That’s what I saw at busystock.com. It’s free, maybe not accurate. One of the guys at TT just sold a May inverted strangle, 55/60, seems risky to me.
  - Jeff 6:49 am on Thursday, March 30, 2017
    
    I see your error! Or rather, I see the error on buystock.com that tripped you up. LULU switched to AFTER CLOSE reporting last two quarters. Buystock failed to note that, and thus their last two quarters incorrectly list the stock’s performance the day BEFORE the announcement, missing the big moves afterward.
    
    I would send them an email. Did TastyTrade make the same mistake?
    - thomberg1201 6:54 am on Thursday, March 30, 2017
      
      Thanks Jeff-shame on them. The consensus at TT was a small move, nobody mentioned why. One thing I don’t like there is we can’t ask them about their trades, at least I don’t know of a way, and there isn’t much room for their explanations.
      I’m going to be OK on this, I sold my put for a plus 7.38, took in 5.10 on the straddle, need a little bounce…
      - Jeff 6:56 am on Thursday, March 30, 2017
        
        I use Optionslam.com… haven’t seen an error in 2+ years. I pay 9.99 per month, however. Feel free to ask me for data anytime.
        
        thomberg1201 6:58 am on Thursday, March 30, 2017
        
        Thank you, I appreciate it.
      - fuzzballl 9:15 am on Thursday, March 30, 2017
        
        If you can get access to Tastyworks (I opened an account but didn’t fund it) you can see everyone’s trades and adjustments. FWIW, Sosnoff had a put ratio spread (bought 1 and sold 2 lower for a credit). Blew out the bottom so he was rolling the shorts and selling ATM against them.
thomberg1201 7:48 am on Thursday, March 30, 2017

Here is one explanation from one of the TT Traders on his LULU move. He bought tomorrow’s 65 put and sold an April 21 55 put.

Mike – “Good reminder that anything can happen during earnings! I searched for a bunch of maneuvers that would help my cost basis, but there isn’t much liquidity in the underlying anymore. I landed on this decision, which was to roll my short put down to 55, 3 points higher than the market right now. There was no situation where I could roll this for a credit – there is no liquidity in the 65 strike because it’s so far ITM now. There is about $0.70 of extrinsic value in this 55 put for APR, which is similar to if I were to sell a 50 put that is OTM. However, with this option, if it expires OTM in 22 days I will be able to reduce my net loss from around $800 to $431. Since I collected $5.14 originally, and rolled for $9.45, if this put expires OTM my net loss is 514-945 = $431. I think this is a fair trade and probably my best shot at reducing the max loss on this 3x expected move earnings announcement. “

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