Stock / Symbol: Twitter / TWTR
Price at trade post: $40.66
Option Strategy: [private_monthly]condor[/private_monthly]
Reasoning: Based on the options activity on TWTR, there are lot of bets that Twitter will pop to around the 45 level after tomorrow's earnings. So, I'm putting on a low risk, high reward strategy to play that possibility. This [private_monthly]Condor[/private_monthly] will utilize this week's expiring options. Current Greeks on the trade are: 3.9 delta, 1.9 theta, and -0.1 vega. If we get the expected pop, we'll close out this trade this coming Friday afternoon.
Trade Details:
[private_monthly]
BTO 2 TWTR FebWk1 43 Calls
STO 2 TWTR FebWk1 44 Calls
STO 2 TWTR FebWk1 46 Calls
BTO 2 TWTR FebWk1 47 Calls
for a max net debit of $0.20 per contract (day order, limit order). The mid is currently 0.16. Try for the mid +0.01. If not filled today, it's ok to try again tomorrow.
Requirements:
Cost/Proceeds $40
Option Requirement $0
Total Requirements $40.00
Estimated Commission $12
[/private_monthly]
Max Risk: $40
Max Reward: $160 or 400% between [private_monthly] 44 & 46 by Feb 6th
Profit Range: between [private_monthly] 43.20 & 46.80 by Feb 6th
Suggested Downside Stop: NA
Suggested Upside Stop: NA
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