11/18 –  With Roku around 237, I’ve decided to mitigate our risk any further and completely close this trade for a 5.05 debit. Total loss was $240.

On 11/4 (post earnings), ROKU breached the lower end of our put side, so to manage, we rolled our calls down for about a $100 credit.

Sell the Nov 19 320 Call

Buy the Nov 19 325 Call

Buy the Nov 19 390 call

Sell the Nov 19 395 call

 

What’s the trade?  

Sell a $5 dollar wide Iron Condor 295/300/390/395 in ROKU for $164 credit or greater out to Nov 19th.

With ROKU trading at 337 on 10/20:

• Buy the Nov 19 295 put
• Sell the Nov 19 300 put
• Sell the Nov 19 390 call
• Buy the Nov 19 395 call

• Premium: Try to collect at least $164
• Rationale: This is a defined risk trade. You can make up to $164 if ROKU stays between 300-390 on expiration. ROKU has an IV Rank of 24.9%. This trade collects $3.50 in theta decay each day.
• Probability of making 82$: 71%
• Max Loss: $336
• Assumption: Neutral

Timeframe: ~1-4 weeks

Stay between the lines, ROKU