Today GMoney posted a butterfly ('white hoof") so I decided to get in after the 1st hour.
This stock has been heading upward since April so we did the calls instead of puts.
Earnings occurred last night at 8:30pm so allowing this to open this morning to see where it would end up post earnings helps shave your risk down dramatically.
When I looked at this trade at 12:42pm, this butterfly was worth about 0.95, so i placed an order to fill at 0.75 so I could capture more of the volatility craziness today. The greeks still looked good where my theta was worth twice my delta, giving me great protection on my shorts.
BOT BUTTERFLY AZO JUN 08 125/130/135 CALL @.73 debit
Then I put an exit order to fill at 0.95. I got filled at 1:07pm at 0.95.
SOLD BUTTERFLY AZO JUN 08 125/130/135 CALL @.95 credit
.95-.73/.73= 30.1% in less than 1 hour!
You may still be able to capture the volatility if you play with your order price...be patient and watch it. Good luck!
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment