Rocket Equities & Options - BBY Iron Condor 08-24-20
New Trade - Iron Condor in BBY
We are initiating a new Iron Condor Options Trade in BBY ahead of their earnings tomorrow, with a bit of a negative bias.
Sell the Aug 28 $119 call
Buy the Aug 28 $120 call
Sell the Aug 28 $110 put
Buy the Aug 28 $109 put
All 4 legs should provide a credit of about $50 - don't just buy at the ask and sell at the bid, sometimes the spreads can be wide - go for the middle.
We achieve a max profit of about $50 per contract with a max risk of $50 per contract in this trade.
Our max profit range is from $110 - $119. BBY is at $117. The expected move right now in BBY ahead of earnings is $6, so we hope to absord some of that premium, with a negative bias coming into their numbers tomorrow morning. BBY has benefited from the past 5 months, but their stock has also just risen from $48 to $117, and it is probably priced for epic numbers before the bell tomorrow. Again, keep your risk in check as if BBY trades more than $2 higher by the close Friday, or $7 lower, this position will be a max loss.
Sell the Aug 28 $119 call
Buy the Aug 28 $120 call
Sell the Aug 28 $110 put
Buy the Aug 28 $109 put
All 4 legs should provide a credit of about $50 - don't just buy at the ask and sell at the bid, sometimes the spreads can be wide - go for the middle.
We achieve a max profit of about $50 per contract with a max risk of $50 per contract in this trade.
Our max profit range is from $110 - $119. BBY is at $117. The expected move right now in BBY ahead of earnings is $6, so we hope to absord some of that premium, with a negative bias coming into their numbers tomorrow morning. BBY has benefited from the past 5 months, but their stock has also just risen from $48 to $117, and it is probably priced for epic numbers before the bell tomorrow. Again, keep your risk in check as if BBY trades more than $2 higher by the close Friday, or $7 lower, this position will be a max loss.