mortlightman 6:27 am on Thursday, April 4, 2019

STZ

Very interested in how we manage this Dbl Calendar, looking good.
Do we close early on a nice pop or roll shorts out a week and 5 points away?

Jeff 6:59 am on Thursday, April 4, 2019

I realize I didn’t get too in-depth on this in the webinar. It has been profitable all morning, but to get a double or triple, you need to allow the front week options to decay. That doesn’t always happen fast. Usually you’ll need to wait until midday or near the close. The closer you are to Friday, the quicker the decay. While we wait, the risk is the price taking off or dumping too far from our strikes.

So it’s a matter of balancing the option decay against underlying movement. I’m waiting for the decay for now.
- mortlightman 7:01 am on Thursday, April 4, 2019
  
  am watching it also.
  Thanks
  - Jeff 7:55 am on Thursday, April 4, 2019
    
    I’ll probably look to close on any retracement now. Maybe only breakeven. Unfortunately, it is taking off and may not come back.
    - mortlightman 8:03 am on Thursday, April 4, 2019
      
      closed $.85 small profit
      - Jeff 9:36 am on Thursday, April 4, 2019
        
        Today’s action makes me realize another element to these trades (and all earnings trades):
        
        If the earnings are released in the AM, intraday action may have more movement than those that report the night before. This is because the conference call will start or continue into the trading hours. For reports in the afternoon, all of the info has been absorbed over night and that could mean less movement.
        
        So, waiting this morning was not such a good idea, because with the perfect opening you need to grab the profit before the ongoing conference call affects the price.
        
        I closed some for .56.
        
        mortlightman 9:41 am on Thursday, April 4, 2019
        
        I have been noticing the same.