TRADE IDEA: KMX APRIL 21ST 50/52.5/60/62.5 IRON CONDOR
KMX announces earnings on 4/6 before market open, so look to put on a play before tomorrow's New York close to get in on a volatility contraction play (six month implied volatility percentile is around 100, with background implied at 47).
Here's the metrics for this puppy:
Probability of Profit: 50%
Max Profit: $113/contract
Max Loss/BP effect: $137/contract
Break Evens: 51.37/61.13
Theta: 2.90
Delta: .45 (neutral)
Notes: Here, I've gone in a little bit tighter (around 30 delta for the shorts) to bring in a little more credit and am keeping the wings somewhat tight because, well, it's a piece of crap with monthlies only, so I don't want to hang a lot of BP out there if it causes me trouble because I'll have to roll from month to month.
Here's the metrics for this puppy:
Probability of Profit: 50%
Max Profit: $113/contract
Max Loss/BP effect: $137/contract
Break Evens: 51.37/61.13
Theta: 2.90
Delta: .45 (neutral)
Notes: Here, I've gone in a little bit tighter (around 30 delta for the shorts) to bring in a little more credit and am keeping the wings somewhat tight because, well, it's a piece of crap with monthlies only, so I don't want to hang a lot of BP out there if it causes me trouble because I'll have to roll from month to month.
Commentaire:
No fill and wasn't gonna chase. Grotesquely wide b/a, to be honest.