PINS Pre-Earnings Straddle
تم تحديثه
Description:
PINS is in its extended down trend that began on 12FEB, back below the 50D & 200D EMA.
Volatility has skyrocketed since the emotional rollercoaster that was PYPL takeover rumors, so what is priced in, and what is next for PINS?
Earnings after close on Friday.
Going for end-of-month options to evade the high premium from earnings week.
From Deltaone on Twitter: https://twitter.com/DeItaone/status/1454785325356683266
Long Straddle
Levels on Chart
Break-evens
I consider this a risky trade, so my capital allocation will be strictly limited.
Will close the position out if there is no considerable move in the underlying by 12NOV.
The Trade
BUY
11/26 50C
SELL
11/26 40P
Only invest what you are willing to lose
Break-evens vary on fill
*It is an option to turn this into Calendar Straddle by selling the same week strangle against it, thus reducing break-evens, or even creating a dual calendar spread.
I have opted against these because I trust the small potential of PINS to hit a 20% gap this week, given the earnings scene in the broader market right now.
I will update when/if I fill these
PINS is in its extended down trend that began on 12FEB, back below the 50D & 200D EMA.
Volatility has skyrocketed since the emotional rollercoaster that was PYPL takeover rumors, so what is priced in, and what is next for PINS?
Earnings after close on Friday.
Going for end-of-month options to evade the high premium from earnings week.
From Deltaone on Twitter: https://twitter.com/DeItaone/status/1454785325356683266
- 66% expect beat
- 10.9% move priced in
- 19.3% avg move post earnings in previous quarters
Long Straddle
Levels on Chart
Break-evens
- 52.47, +17.75%
- 37.53, -15.78%
I consider this a risky trade, so my capital allocation will be strictly limited.
Will close the position out if there is no considerable move in the underlying by 12NOV.
The Trade
BUY
11/26 50C
SELL
11/26 40P
Only invest what you are willing to lose
Break-evens vary on fill
*It is an option to turn this into Calendar Straddle by selling the same week strangle against it, thus reducing break-evens, or even creating a dual calendar spread.
I have opted against these because I trust the small potential of PINS to hit a 20% gap this week, given the earnings scene in the broader market right now.
I will update when/if I fill these
تم فتح الصفقة
Filled at 2.44.تم فتح الصفقة
I quadrupled this position at the same fill, 2.44.تم فتح الصفقة
Marked EOD at 2.97, +22%, due to gains in the long put.After hours its settled around 46.30, +6%, which really moves against the gains from today, but we have time too see how it will play out.
تم إغلاق الصفقة يدويًا
I underestimated the premium I was paying for options before earnings.Closed these out at 1.13, -58%
إخلاء المسؤولية
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