This is an idea from John Carter at simplertrading.com. He bought it yesterday (a 10-lot), I’m getting a slightly better price today (for a 1-lot). Risking $275 for max gain of $2200-ish. Idea is that price will gravitate toward 1600 for the monthly expiration.
Bought to Open $AMZN May 18th 1575/1600/1625 call butterfly for 2.75.
#IronButterfly #Pinning
STO $AMZN May 20th 700/705 call spread for 1.50. Paired with 700/695 put spread sold yesterday for 2.55. Total risk on trade: .95. Max gain: about 3.90
… I mean straddle. Short the 100 straddle today, breakevens at 97.70 and 102.30. We were spot on 100 yesterday, but it didn’t get cheap enough for me to close. It looks like this may hit breakeven, but a move closer to 100 would be nice…… #Pinning does not work so well in these volatile markets.
#Pinning #ShortStraddle
STO AAPL Jan 15th 100 straddle for 2.34.
Based on gigantic Open Interest on the $AAPL 100 calls and puts, this is a pinning play. Pinning tends to work best on monthly expirations. This has a profit zone between 97.60 and 102.40. You can also reduce your risk and make this an #IronButterfly by buying 102 call and 98 put, which should give you 1.40 credit with .60 max risk.
Options Bistro 