What’s the trade?
9/2/21 – Just closed for 18% ROI overnight! I setup an automated GTC (“Good ‘Till Canceled”) order to close out the entire trade for 50% of the premium collected. In my case, this is a $134 debit, since I collected $266.
9/`1/21 – Earnings for OKTA is 9/1 (today) after the bell. We sold an Iron Condor in $OKTA for $266 credit.
What’s the trade?
With OKTA trading at 265 on 9/1
- Buy the Sept 17 235 Put
- Sell the Sept 17 245 Put
- Sell the Sept 17 290 Call
- Buy the Sept 17 300 Call
- Premium: Try to collect at least $266.
- Rationale: This is s defined risk trade. OKTA has earnings after the bell on 9/1 and has a decent IV Rank of 31%. After earnings, the Implied Volatility tends to go down and reduce the price of the short options you’ve sold. Max loss is $1,000 minus the premium collected.
- Probability of making 133$: 71%
- Assumption: Neutral
- Timeframe: Overnight to 2 weeks.
