Could someone explain what a #stairstep is and show an example?
Thx
Tag Archives: StairStep
TSLA
it seems they stopped trading TSLA
SHAK/WTW earnings
SHAK closed for over target, $315 profit on #stairstep
WTW: Opened Stairstep for earnings today. STO Sep 70 put @.95×10, BTO Sep 90/85 put debit spread @ 2.17 x 2, BTO sep 80/75 put debit spread @1.14 x 2. Break even is $68, 25% down from current spot.
These trades are 100% winners so far
SHAK Earnings
#Stairstep STO Sep 50 puts @ .75 x10, BTO 62.5/60 put debit spread @1.10 x 1, BTO 57.5/55 put debit spread @.69 x2.
Break even 48.75, which is getting close to 34% downside with no upside risk.
Important note on these trades: The breakeven is very far away, but on a significant down move there are short term losses that require duration in the trade for theta to overcome. As price drops, the “stairstep” profit levels go up.
July 25
My last two earnings trades in LMT and BA are looking fine. They are theta duration trades now.
GOOGL: #supercharger BTO Aug 3 1230 STO Aug 3 1235 for $4.10, target $4.55
GRUB: #StairStep STO Sep 21 100 put @.70 x10, BTO 115/110 put debit spread @1.05 x 2, break even: $98.50. Plan to roll the 100 puts to 105 to collect more premium.
Options Bistro 