July 22nd 2015 Earnings Play Trade Alert
Trend: Sideways, Earnings Play
Possible trading strategy: Iron Condor
Strike Prices: 45/49, 60/65
Return on investment: 57%
Probability Out of The Money: 71%
Duration of Option Contract: 30 days
Full Premium Credit collected: $1.83
Debit risk: $3.17
The stock is undergoing high IV due to earnings results in the next few days. It has climbed above $50 and since acted as support line for the last two earnings results. The iron condor strategy is used to hedge the downside movement as well as upside movement. Based on how illiquid the stock is, the listed options contracts are the only ones available for iron condor.
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