smasty 11:58 am on Wednesday, July 25, 2018

ALGN Earnings

STO Sep 270 put @1.40 x9, BTO 370/360 Put Debit Spread @ 3.70 x1, BTO 320/310 Put debit spread @1.25 x 2. Break even: 266, 30% from spot.

thomberg1201 12:13 pm on Wednesday, July 25, 2018

Amazing run up since last earnings whew
- fuzzballl 12:15 pm on Wednesday, July 25, 2018
  
  Sure is…nearly everything I look at now is up 50, 100, 150 percent in less than a year. The madness has to stop soon (I think) 🙂
  - hcgdavis 3:37 pm on Wednesday, July 25, 2018
    
    it will be ugly for some tickers when it does, but I will be on the sidelines with a pile of cash to use
fuzzballl 12:26 pm on Wednesday, July 25, 2018

Another fun one….kinda cool!

No upside risk with gain capped @ $640

Makes more on the downside at expiration with max gain at the 270 strike of $3640 with breakeven at 266. Below 266 losses similar to naked puts.

(I think) ?

🙂
- smasty 12:29 pm on Wednesday, July 25, 2018
  
  Exactly…..but there is pain to endure on that pink ski slope 🙂 But theta will be very high on a down move.
  - fuzzballl 12:34 pm on Wednesday, July 25, 2018
    
    For sure. Riding that pink slope down while hoping it stops by 266 in September would be the nail biter. That would be a yuuuge down move to get there though. Chances are in this market it’ll be up another 30 percent tomorrow! 🙂
    - smasty 12:40 pm on Wednesday, July 25, 2018
      
      Yes for sure! I size everything for assignment, even if it seems far away.
      - smasty 12:43 pm on Wednesday, July 25, 2018
        
        ALGN has an average 13% vol crush after earnings, but much less for 60DTE. The vol crush moderates the “ski slope” a lot, but not as much for that far out if there’s trouble.

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