Options Strategist
Summary: In the dynamic world of options trading, keeping a keen eye on the performance of key players in various sectors is crucial. One such player that has consistently made headlines is Netflix. As we approach the release of Netflix's earnings report, there are several strategic moves that investors and traders can consider.
Reason | High Implied Volatility (IV) due to numbers out on 19th July after market close |
Expectation | Limited movement in Netflix shares after releasing the figures and imploding IV |
BEPs on expiry | Profit between $413.10 and $501.90 |
Max Risk | If you get a premium of $1.90 the max risk/loss would be $5 - $1.90 = $3.10 per share. 1 contract = 100 shares. Max Risk/Loss = $3.10 * 100 = $310. |
For Who? | Only for traders/investors to adhere to the view that the numbers will not cause a move outside the expected move in the share price of Netflix |
Trade set up | Sell the Iron Condor in the last 1 – 4 hours of trading on Wednesday 19th for around $ 1,45 - $1,50, or more (stagger in case of bigger positions) |
Closing | A GTC (Good Till Cancelled) order to close the position at $0,30 (stagger in case of bigger positions) |
Emergency | If there is a big move in the underlying outside the bandwidth of the long strikes, monitor closely and close position latest on the 21th of July 2- 4 hours before expiry |
Probability of Profit | 64.17% |
Expected Move | for 21th July ’23, based on ATM straddle: +/- $39.99 |
IV Rank | 32.20% |
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