For the third week of October I listed in this article, all the trades I would be considering
Mon Oct 16 2017
United Health Group Stock (UNH) – reverse iron condor – Nov 17 Expiry – $5.00 spread
They report before markets open on Tuesday. That means trades must be setup by 4:00 PM today.
I bought 5 of the Nov 17 expiry $190 put strike for $3.45 and sold 5 of the $185 put strike for an average of $1.97 = ($740.00)
This creates a $5.00 spread at a cost of $1.48.
I bought 5 of the Nov 17 expiry $195 call strike for $3.45 and sold 5 of the $200 call strike for $1.96 = ($745.00)
This creates a $5.00 spread at a cost of $1.49.
Commission = $15.00
Total Capital at risk = $1500.00
Using Nov 17 expiry allows 4 weeks for the trade to work. A move of $5.00 in either direction will produce about a 60% gain. I might be able to get more if the stock moves up and then down enough before Nov 17 so I can profit from both side.
Thank you for not posting these trades to my public Yahoo forum.
Questions? Use Ask Teddi.
Learning The Trade Ahead Of Earnings Strategy
For investors learning the Trade Ahead Of Earnings Strategy, one of the best ways to learn is through actual trades, from start to finish.
Here are trade articles that are well worth reading to learn more on the Trade Ahead Of Earnings Strategy including how to setup trades, manage and adjust them and close them for profits. Make sure to paper trade any strategy until there are consistent profits.
Using The Trade Ahead Of Earnings Strategy With Smaller Portfolios: Aug 31 2017
Under Armour Stock: Aug 7 2017 / Strangle
Amazon Stock: July 28 2017 / reverse iron condor
PepsiCo Stock: July 25 2017 / reverse iron condor
Alphabet Stock: July 25 2017 / reverse iron condor
Netflix Stock: July 18 2017 / modified reverse iron condor – full strategy explanation
Netflix Stock: July 17 2017 / handling the modified reverse iron condor
Delta Stock: July 13 2017 / the day after earnings – reverse iron condor
How To Pick Option Strikes May 16 2017
American Airlines Stock Returned 87% – Here’s How – April 27 2017 / reverse iron condor
Lulu Stock: March 30 2017 – reverse iron condor Handling The Trade Strategy The Day After
Yum Stock: Feb 4 2016: handling a loss when using reverse iron condor trade ahead of earnings
Monster Beverage Stock: May 1 2016: 104% Return – Handling The Trade After Earnings Are Announced
Twitter Stock: May 1 2016: reverse iron condor – calls ended up worthless – 26% returned
Apple Stock: Jan 30 2016: improving on a reverse iron condor trade – 81% return
Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. You always trade at your own risk. Read the full disclaimer.