We've been keying on the NTAP chart since our January 16 Live Trading Session at ETNtrade, which was a market holiday.  Entry was Tuesday, January 17.  Here are the details

NTAP – Netapp on January 17 trading at $33.98.  Earnings Wednesday, February 15 (AC).  IV 43, low 35.  Average move on earnings 8.6% = $2.90.  March 33/35 strangle for $3.86.  With IV drop to 35, B/E 29.36 – 38.42, rough risk $2.06. 

Exit – Thursday, February 16 in the AM. 

Thursday, February 16 NTAP trading at $42.10, spread worth $7.29 (.09 + 7.20). 

Gain of $3.43, ROI 89%.

~DanTrader 

Comments (0)