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closed Positions

INTC: 01.23.20 – 03.27.20

Equity | Intel Corp | Status: Closed

Opening Trade

01.23.20
This is will be the first
trade that I've done in a long time, and the first that I've done since launching Food for Theta. Earnings announcements are like quarterly progress reports given by companies. We categorize earnings announcements as
because they can result in extremely large moves in an instant. Due to the heightened risk of volatility, they often generate juicy option
just before the announcement. Once the event is over,
typically collapses which can result in big profits for option sellers. The risk of a trade like this is an overly-huge move which can result in significant losses. At this point, though, implied volatility is so dried out in the general market that it's hard to find another way to stay active.
Tonight is INTC's earnings so I'm using the heightened
to kickstart a trade in March with lots of
The expected move for the event looks to be about $3 and my
has about $4.50 of padding on both sides. As long as the share price remains between my
I expect volatility to collapse and my trade to benefit. I'd like to target 50% of max profit but I may consider
it earlier if volatility contraction pays quickly. If one of my strikes gets blown out, I'll
the
and defend from there.

Risk Profile:

Figure 1

Strategy: Short MAR 20 60/67.5 Strangle

sto 1 mar 20 60 put
sto 1 mar 20 67.5 call
Fill Price: $2.40 credit

Position Analysis

U/L Price: $63.66
IV: 28.5%
IVR: 70.8
Liquidity: 4/4
Position: Short MAR 20 60/67.5 Strangle
POP: 61%
Cost Basis: $2.40
Risk: Undefined
BPR: $900
Max Profit: $2.40
Max Loss: Unlimited
Target P/L: $1.20
Break Even(s): $57.60, $69.90
Extrinsic Value: $240.00
Net Delta: -1.72
Net Theta: 3.930

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