Final Earnings Plays for Spring 2022
The livestream is posted under separate cover.
The following was sent out today for the upcoming week, which is the close of Spring 2022 Earnings Season alerts. Green Goose Trader sends a similar alert to all premium subscribers and the private Swing Trading / ER Strategies Group at OptionsPlayers.com every weekend during earnings season and hosts livestreams on Sunday evenings to review the previous weeks performance as well as potential candidates for the coming week.
Iron Condor Candidates (31 May – 3 June 2022)
On noted day of play at 15:41, go into TomsOptionTools option chain for the candidate and determine the premium for the weekly straddle (call + put), rounded up to the nearest dollar. Subtract and add this amount to the current price of the candidate to obtain the short strikes. Choose one strike further (at least $1.00) in each direction for the long strikes. The candidate is valid if the total premium is a minimum of 33% ROI (=> $0.25 on $0.75 risk, $0.83 on $2.50 risk, etc…). Less is not worth it. Position size to Risk - $250 in the Options Players Swing Trading / ER Strategies Group.
The at the money straddle premium for MS on Weds EOD was $1.45 + $1.28 = $2.73. The stock price was $84.13. There for the ideal short strikes were $84.13 - $2.73 = $81 (rounded down) for puts and $84.13 + $2.73 = $87 (rounded up) for calls. Long strikes were $1.00 distant at $80 puts and $88 calls.
Total projected premium EOD for +1 x MS Apr14 $80 put / -1 x MS Apr14 $81 put / -1 x MS Apr14 $87 call / +1 x MS Apr14 $88 call was $0.29 credit on $0.71 risk for a total potential ROI of 40.84%. Position sizing for this example was 3 contracts x $71 = $210 risk. Exit is categorically EOD the following day.
Note: Candidate should be rejected if its options are illiquid (bid/ask for the short legs have > 15% slippage and/or the daily volume is < 20 contracts).
Iron Condors Candidates for Upcoming Week
CRM Entry: Tuesday, 31 May (Past performance 3 out of 4 wins)
Exit: EOD on Wednesday, 1 June
CRWD Entry: Thursday, 2 June (Past performance 3 out of 4 wins)
Exit: EOD on Friday, 3 June
DO YOUR OWN DUE DILIGENCE.
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It should not be assumed that the methods, techniques, or indicators presented in these posts will be profitable or that they will not result in losses. Past results are not indicative of future results. Examples are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, publisher and all affiliates assume no responsibility for your trading results.
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