It’s Aliiiiivee!!!

UPDATE 3:00pm EDT: Fujisan cooked up a new option monstrosity genetically engineered to leverage from ISRG – a known public offender and high flyer:

I mean – look at this thing – it’s a monster!!

It’s aliiiive – alliiiiiive I say!! Mmmwuuuaahaahaaaaaa!!!!

Okay, I just found my meds – much better now. Anyway, this is what she said:

I’m going with HungryNewt’s tarzan strategy (i.e., ATM calendar + protective May Strangle).  This would be a perfect strategy for a high flyer like ISRG.  The only drawback is that it takes more capital, but nonetheless, this probably works the best.  We are finally getting a good (male) spread trader in this site.

I don’t know who this hungry newt is but he better stay away from stash of MREs:

If he as much as glances at them I’ll send over my friend Burt Gummer to kick his ass:

Alright, so that’s on the menu today:

• Appetizer: ATM Calendar Spread on HOG – execute before the close TODAY.
• Entree: Frankenstein Spread on ISRG (see above) – not sure but I think we execute today before the close TOMORROW. Plus a side order of GOOG served in the same configuration TOMORROW.
• Desert: ATM Calendar Spread on BBT – execute before the close TOMORROW.

I looked at the chart and it’s not clear when exactly ISRG reports – it’s sometime tomorrow. If someone knows the exact timing I will update this post with the time to execute this monstrosity.

UPDATE 3:30pm EST: Okay, it is almost time. Annamall recommended to buy a HOG put calendar and I tested actually both sides:

That’s hers with volatility decreasing in 2.5% intervals.

That’s the call calendar equivalent – seemingly favoring the bearish side.

And that is a combo – hey, why not? 😉

Anyway, BBT recently had good earnings as well, so I guess a PUT calendar would be of order as well…

UPDATE 3:40pm EDT: ONLY BUY HOG CALENDAR TODAY – ALL THE OTHERS ARE TOMORROW!!!

UPDATE 3:48pm EDT: If you want to know where my GLD line in the sand is…

…. it’s somewhere in that area highlighted in yella’ – not going to tell you where exactly otherwise those MM biatches are most definitely going to push the tape a few ticks above 😉

UPDATE 3:57pm EDT: I guess we got our {b} wave – very nice. Don’t get too bullish here now folks – yeah we might bust higher but the wave count would look best if we drop further from here to about 830 – 820. Of course if we breach 864.31 it’s all over and we bust higher.