
Rocket Equities & Options Another New Trade 08-18-20
New Trade - Iron Condor for LOW
This is a similar trade to the one we just initiated in TGT.
As of this update we are:
sell aug 21 $165 call
buy Aug 21 $167.50 call
sell Aug 21 $152.50 put
buy Aug 21 $150 put.
The spreads in some of these options are wide - so set your prices near the middle of the bid/offer spread for each leg of the trade. You should be able to end up with a credit of about $100 per contract with a max loss of $150.
The expected move in LOW for earnings tomorrow is $6.67. LOW is trading at $159.10. We've given ourselves about $6 to $6.50 of movement in either direction to achieve our max profit.
This is similar to TGT. LOW has performed very well, and they will probably deliver big numbers tomorrow. But a lot of the upside may already be priced in, and if the numbers aren't great I don't see it cascading too far south.
Again, keep your position sized correctly risking $3 to make $2 in this trade.
As of this update we are:
sell aug 21 $165 call
buy Aug 21 $167.50 call
sell Aug 21 $152.50 put
buy Aug 21 $150 put.
The spreads in some of these options are wide - so set your prices near the middle of the bid/offer spread for each leg of the trade. You should be able to end up with a credit of about $100 per contract with a max loss of $150.
The expected move in LOW for earnings tomorrow is $6.67. LOW is trading at $159.10. We've given ourselves about $6 to $6.50 of movement in either direction to achieve our max profit.
This is similar to TGT. LOW has performed very well, and they will probably deliver big numbers tomorrow. But a lot of the upside may already be priced in, and if the numbers aren't great I don't see it cascading too far south.
Again, keep your position sized correctly risking $3 to make $2 in this trade.


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