CRM announces earnings on Wednesday after market close, so look to put on a setup before NY close if you're going to play .... .
Here's the setup I'm going with (or something very near it, depending on prices move throughout the trading day):
Nov 27th 69/86 short strangle
POP%: 76%
Max Profit: $132/contract
Buying Power Effect: ~$775
BE's: 67.68/87.32
I'll look to take this off at 50% max profit after the announcement, assuming I get filled for 1.32. Check in later for my comments on how I dealt with the setup post-earnings. Setting up the trade in advance of earnings is the easy part; managing it after is where the work comes in, particularly if everything does not go as planned.
Here's the setup I'm going with (or something very near it, depending on prices move throughout the trading day):
Nov 27th 69/86 short strangle
POP%: 76%
Max Profit: $132/contract
Buying Power Effect: ~$775
BE's: 67.68/87.32
I'll look to take this off at 50% max profit after the announcement, assuming I get filled for 1.32. Check in later for my comments on how I dealt with the setup post-earnings. Setting up the trade in advance of earnings is the easy part; managing it after is where the work comes in, particularly if everything does not go as planned.