With COH announcing earnings on 10/27 before market open, look to sell premium with a play before 10/26 New York close to take advantage of post-earnings volatility contraction. With an IVR of 98 and an IV of 48, look to sell premium via short strangle due to the price of the underling.
I'll look to put on a short strangle with a Oct 30th expiry with short strikes at or around the 1 SD.
EXAMPLE:
Oct 30th 27 Short Put/33.5 Short Call Strangle
POP%: ~ 70%
Max Profit: $65/contract
BE's: 26.35/34.15
I'll look to put on a short strangle with a Oct 30th expiry with short strikes at or around the 1 SD.
EXAMPLE:
Oct 30th 27 Short Put/33.5 Short Call Strangle
POP%: ~ 70%
Max Profit: $65/contract
BE's: 26.35/34.15
