#Earnings #JadeLizard (sort of) – Having a great earnings season so almost decided to sell very aggressive strangles in this. Common sense took over but still staying aggressive while limiting upside risk to 45 cents with a Jade Lizard style trade…(sell puts and call spreads where the call spreads are narrow enough to eliminate or minimize up side risk).

Sold ROKU MAY 11 2018 35.0 Puts and 41.0/44.0 Bear Call Spreads @ 2.55

Eliminates most of the upside risk and brings breakeven on the put side down to 32.45 which is near the expected move and below the 20 and 50 day moving averages.

What’s the plan then? Lots of possibilities here. Stock blows out to the upside could book long calls and roll short calls into a new strangle or just sell a few puts right at the open to bring in 45 cents and get out even.

If the stock blows out to the downside could sell more calls near the short puts and wait a couple days and see what happens. Could then roll or ultimately turn this into a Jan 2020 LEAPS style position.