thomberg1201 6:44 am on Wednesday, August 21, 2019
Tags: closing ( 266 ), Earnings ( 3,108 )

#earnings #closing TGT Bought Sept….

#earnings #closing TGT HD

TGT bought Sept. 20 70/82/86.50/87.50 jade lizard/iron condor for 1.07, sold yesterday for 2.48.
HD bought Sept. 20 192.50/210/212.50 jade lizard for 2.30, sold for 2.77, have to keep future short call spreads more narrow in a jade lizard.

Lesserweavil 7:29 am on Wednesday, August 21, 2019

have to keep future short call spreads more narrow in a jade lizard.

Can you elaborate?
- thomberg1201 7:47 am on Wednesday, August 21, 2019
  
  These are new to me, I’m open to correction. The 2 1/2 point spread limited profit with the big run up in the price of the stock. Had it been a 1 point spread, like in my TGT trade, which also has run up, the loss from the call spread would be less.
  - Lesserweavil 8:04 am on Wednesday, August 21, 2019
    
    New to me too, so feeling my way a bit also. Appreciate the explanation. Trying to decide whether to think of this more as an Iron Condor which is missing part of a wing, or a Strangle with upside protection.
    - fuzzballl 8:10 am on Wednesday, August 21, 2019
      
      That’s exactly how I think of it. A short strangle with zero upside risk. Stock takes off then make a little. Stock drops but stays above the put strike make more than just selling the put which reduces cost basis if I end up with the stock.
      
      Could always just sell the put by itself and make more than having the full lizard sold if stock rallies. Or sell a wider iron condor and accept the loss of a big up move. Lots of ways to play these. I just count on taking the stock on an implosion so position size reflects that possibility.
  - fuzzballl 8:11 am on Wednesday, August 21, 2019
    
    One point wide call spread wouldn’t have brought in as much premium from the original sale is the difference. So yes, call side loss would be less but premium received would be less also. I vary mine playing with the strikes before a sale.
john4419 7:58 am on Wednesday, August 21, 2019

Correct me if I’m wrong but was the TGT trade a straight Iron Condor and not a Jade Lizard? I’m possibly missing something!
- fuzzballl 8:15 am on Wednesday, August 21, 2019
  
  Technically it was some sort of an unbalanced iron condor I’m guessing. Since the put side protection was far out of the money it really trades just like the regular Jade Lizard.
  - john4419 8:18 am on Wednesday, August 21, 2019
    
    Thanks Fuzzy, I was getting slightly confused, not unusual! I normally use three position when placing a Jade Lizard and not four.
    - thomberg1201 8:21 am on Wednesday, August 21, 2019
      
      I’ve been adding the long put for a little insurance and a little margin help, but have only done a handful of jade lizards, still feeling my way.
      - john4419 8:24 am on Wednesday, August 21, 2019
        
        Worth looking at for the additional protection.
  - Jeff 9:48 am on Wednesday, August 21, 2019
    
    I would call it a broken-wing condor, since the width of the wings is different. I say unbalanced if you have a different number of options on the various strikes. But I don’t think there’s any official rule for names.
    - fuzzballl 9:50 am on Wednesday, August 21, 2019
      
      Thanks! That makes sense. Wasn’t exactly sure what the term was.
- thomberg1201 8:17 am on Wednesday, August 21, 2019
  
  You are right, the TGT was an iron condor, thank you for pointing it out, sorry about that.

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