Jeff 12:05 pm on Thursday, April 25, 2019
Tags: DoubleCalendar ( 209 ), Earnings ( 3,108 ), IronButterfly ( 141 ), LongStraddle ( 59 ), ShortStrangles ( 716 )

AMZN IB

#Earnings Sold to Open $AMZN Apr 26th 1885/1915/1945 #IronButterfly for 28.15. Risking 1.85 to make hopefully a lot.

#doublecalendar, #longstraddle, #shortstrangles

Jeff 12:27 pm on Thursday, April 25, 2019

A note on this… I looked at AMZN max intraday moves, and they have most often been significantly higher than the closing cost. This means that AMZN tends to gap at open but then fade back, OR at least come back toward the middle by day’s end. For a strategy like Iron Butterflys, this history tells us to wait until midday or later to close. This is the opposite of TWTR, which historically gaps but then keeps running, as happened on Tuesday.
- mortlightman 1:13 pm on Thursday, April 25, 2019
  
  Looks like a great trade for the hall of Fame. At this time.
  - Jeff 1:36 pm on Thursday, April 25, 2019
    
    Yes, SBUX, too.
    - mortlightman 5:01 am on Friday, April 26, 2019
      
      Got a couple of them
      SBUX
      Closed 1 this AM $.60 and one just now for $1.00
      This was a good one, but sad I missed AMZN
      - jay 8:06 am on Friday, April 26, 2019
        
        I followed and was filled at $28.16. I would really like to know how you made the strike selections, ie based on deltas, based on prior moves (avg, hi, or low ranges), maybe open interest, or what; and with it centered based on what? Thanks!!
        
        Jeff 8:19 am on Friday, April 26, 2019
        
        It was centered based on the current stock price. That’s pretty much all there is to it on an Iron Butterfly trade! I might skew a little higher or lower based on sentiment or trend or historical moves, but these are pretty much straight ATM trades. Same with #ShortStrangles, #LongStraddle, and #DoubleCalendar. All ATM trades.
        
        Jeff 8:24 am on Friday, April 26, 2019
        
        I should add that I do this trade almost every quarter: 60-point wide IB. They rarely turn out as well as this one, in fact they are often losses. But today’s win would make up for about 11 or 12 max losses. That’s the beauty of this trade. You can have way more losses than wins.

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