Jeff 11:38 am on Thursday, February 21, 2019
Tags: DoubleCalendar ( 209 ), Earnings ( 3,108 )

Dub Cals

#Earnings #DoubleCalendar

Bought $AAOI Feb22/Mar01 14.5 dbl cals for .27
Bought $FLR Feb22/Mar01 38 dbl cals for .45

thomberg1201 11:58 am on Thursday, February 21, 2019

Followed on both, thanks Jeff.
jsd501 12:10 pm on Thursday, February 21, 2019

Forgive my ignorance but what is a double calendar spread? I have not been paying much attention to the market.
- Jeff 12:19 pm on Thursday, February 21, 2019
  
  To take the FLR trade as an example.
  
  Sell Feb22 38 calls for 1.25
  Sell Feb 22 38 puts for 1.48
  
  Buy Mar01 38 calls for 1.44
  Buy Mar01 38 puts for 1.74
  
  Total debit from the above: 0.45
  
  After the earnings event, the volatility of the Feb 22nd options will collapse, and the long options from next week will only reduce a bit. If price does NOT move too far from the 38 strike, the difference will allow you to take a decent profit. However, if FLR price moves too much, you’ll either lose completely or not profit much. Sometimes you can take profit at the open, other times you can wait hours or even days for stock price to drift closer to your strike and take profit.
  
  They are low risk, and the good ones are usually a double or a triple.
  - jsd501 12:22 pm on Thursday, February 21, 2019
    
    Thanks, now I get it.
  - john4419 12:33 pm on Thursday, February 21, 2019
    
    Jeff, are you still in the HLF trade?
    - Jeff 12:34 pm on Thursday, February 21, 2019
      
      yes
mortlightman 12:58 pm on Thursday, February 21, 2019

What close prices are you putting on for the open?
- Jeff 1:00 pm on Thursday, February 21, 2019
  
  I look at what TOS models for max profit. I’ll be doing a tutorial on these trades soon.
  - john4419 1:03 pm on Thursday, February 21, 2019
    
    Do you know what they use to base their pricing? Problem is Schwab does not appear to offer anything like TOS!
    - Jeff 1:14 pm on Thursday, February 21, 2019
      
      You have to model the trade then enter estimated volatility drop on both expiries. Too hard to explain but I will show it in a video soon.
      
      Have you tried to open a TOS account yet? I was able to use the full platform without funding it for months. Then, when they shut me off, I funded it with $500 so I could use it. I did that for a couple years before I actually started executing trades with them.
      - john4419 1:45 pm on Thursday, February 21, 2019
        
        I can’t have a TOS account as I’m not a US National!
        I originally had TOS account but they closed it, as they do not have offices in the UK.
        
        Jeff 1:49 pm on Thursday, February 21, 2019
        
        Ugh. Well, OptionVue software has pretty good volatility and risk profile modeling.
        
        john4419 2:00 pm on Thursday, February 21, 2019
        
        Thanks Jeff.
  - mortlightman 1:09 pm on Thursday, February 21, 2019
    
    That would be good got them both AAOI $.36 & FLR $ .35

Leave a Reply Cancel reply

s: search
c: compose new post
r: reply
e: edit
t: go to top
j: go to the next post or comment
k: go to the previous post or comment
o: toggle comment visibility
esc: cancel edit post or comment