Was asked Thursday after market close to post Adobe positions, after making the post about sizing the move, not timing the move. Am up a lot.
"On Adobe, opened $535 put calendar, $500/$505 diagonal put spread
Call side opened $625/$630 diagonal iron condor, and $645/$650 diagonal iron condor
Think it'll sell off so tried lowering costs call side, while placing my FOTM call play past $635 or the year high so should be safe there not get blown out if does run
To downside opened up the throttle, no spread loss for the closer play using calendar ($535 strike), and diagonal put so if really dump won't have intrinsic values identical and can profit well"
Wrote this before earning's reported if it sounds pretense. Price at $527. Made almost 250%. My plan was damn near bulletproof void a 30%+ move. I set my set of spreads at 8% and 13% percent out. My strategy is explained in past post, idk if should be sharing it anymore am going to go off the grid soon.
Posted by breakyourteethnow
2 Comments
How I will manage the position tomorrow
The short legs will still have premium by a bit in the morning so closing near 1pm will be a lot more profitable than 9am
The directional move can be lost if price starts to recover so my best approach to manage this position is buying calls first thing in morning, then closing my spreads at 1pm to finish decaying short legs. Small insurance play to keep everything locked in until 1pm when go to close.
I started doing something similar, had great success with NVDA and DELL, but then made mistakes on AVGO that were my own doing when I should’ve just did what I did exactly on NVDA. Skipped ADBE today just to take a step back and make sure I see exactly what I did wrong with AVGO, so seeing your post was nice, I appreciate the detail highly.
If you’d like to chat more about these earnings strategies I’d love to. I feel like I am Switzerland with options – not a bull or a bear, I just want to swipe elevated IV money.
I also was trying to see if there was any way to do this with SPY, since 0DTE are generally higher in IV than further out, but I think that’s just Penny steamroller, but maybe it’s not not sure, just started looking into that while waiting for another good earnings.