Options Strategist
Summary: In the world of investing, earnings season always brings a flurry of activity and potential opportunities. This coming Wednesday, before the bell, we'll be hearing from ASML Holding N.V., a key player in the semiconductor industry.
Reason | High Implied Volatility (IV) due to numbers out on 19th July before market open |
Expectation | Limited movement in ASML shares after releasing the figures and imploding IV |
BEPs on expiry | Profit between $718.25 and $801.75 |
Max Risk | If you get a premium of $1.75 the max risk/loss would be $5 - $1.75 = $3.25 per share. 1 contract = 100 shares. Max Risk/Loss = $3.25 * 100 = $25. |
For Who? | Only for clients to adhere to the view that the numbers will not cause a move outside the expected move in the share price of ASML Holding N.V. |
Trade set up | Sell the Iron Condor in the last 1 – 4 hours of trading on Tuesday 18th for around $ 1,45 - $1,50 (stagger in case of bigger positions). The more you can receive the more you limit your risk. |
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 | 72.62% |
Expected Move | for 21th July ’23, based on ATM straddle: +/- $35.28 |
IV Rank | 13.82 |
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