I feel really undecided today, and no I’m not talking about the two candidates as I already mailed my absentee ballot three weeks ago. Rather it’s those damn setups I found which look exceedingly delicious and which I’m hesitant to take in anticipation of some wild swings later tonight. But maybe just a teeny weeny position, e.g. 0.1% would be permissible? Let’s take a look and then we’ll decide
First up big props to Greenlander for digging up this beauty – we are much obliged! Report to the lair to claim your free month of Zero goodness (email Mole at admin@). NVDA is a great candidate for an Limping Condor (a.k.a. double diagonal) or a Double Calendar Spread (DC). This time around, we’re going to stretch out our wings on our LC a bit to widen our break even points.
Macy’s (M) may not be anyone’s favorite place to shop these days, but its volatility curve is set up nicely for a vega crush campaign. We’re going to look at two different ways to take advantage of M’s volatility term structure ahead of earnings (tomorrow morning before open).
The first round of our IV crush earnings plays was a resounding success and as there’s about a week’s worth of announcements left in this quarter we are pumped and ready for a second helping. If you’re new to options then I suggest you point your browser to to the first three posts in our ongoing tutorial series on option theory. Once you develop a basic understanding of what we are doing and how, selling volatility ahead of earnings announcements may become another profitable tool in your trading arsenal.