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Search resuls for: "Iron Condor"


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Netflix (NFLX) kicks-off the tech earnings season Tuesday after the close and the market as usual is anticipating a big price movement. We'll discuss a high probability bet that wins if Netflix moves by less than the market anticipates...in either direction. It is utilized to estimate the extent to which the options market anticipates the stock's movement following an earnings disclosure. Trade Structure and Analysis: SELL -1 NFLX 535-540 C/435-430 P Iron Condor CREDIT (also max profit): $140 MAX LOSS: $360 Trade Execution: These post-earnings trades are quick. Since these trades are high probability trades, I can expect 8 out of every 10 trades to become winners and the winners add up quickly.
Persons: Nishant Pant Organizations: Netflix, condor, Condor, Traders Locations: NFLX
Setting up the Earning Iron Condor Selling an Iron Condor is an options trading strategy where you simultaneously sell out-of-the-money call spreads and put spreads. Most trading platforms will allow traders to put this trade as one unit by selecting "Sell Iron Condor" as the trade structure. 80% probability of success, as is the nature of high probability trading, the risk is higher than the max profit. (Try an unbalanced Iron Condor) This trade has 80% chance of success based on options probabilities. The put spread has a 90% probability of success and the call spread has the original 80% probability of success.
Persons: MSFT Organizations: Microsoft, Condor, Iron Condor, Traders Locations: MSFT
Let us start by examining the historical price movement in NFLX after the last four earnings events. As traders place their bets on an upcoming event like this, demand for options increases, and the price of options that expire just after earnings is inflated by supply and demand. This is instantly reflected in options pricing on the following day after earnings, and options lose all this inflated juice thereby dropping drastically in value. Trade execution: These post earnings trades are quick. Traders put them on 1 to 2 hours before the market close on the day earnings are about to be announced.
Persons: NFLX Organizations: Netflix, condor, Condor, Traders Locations: NFLX
I don't know what's going on. "That's a really, really dangerous point for all traders: When you first start, you don't know anything and you know you don't know anything; then, you spend a bunch of time and effort learning; and now you think you know something but unfortunately, you still don't know what you don't know." Ultimately, Smolinski's mistake, which he categorizes as the "most pivotal moment in my trading career," forced him to reevaluate his trading proficiency and strategy. Reevaluating his strategy and getting 'super organized'Smolinski didn't have a trading plan up until his first big loss. However, his account drawdown prompted him to create a blank Word document and start his trading plan, which has grown to 388 pages.
Persons: Erik Smolinski, he'd, Dunning, Kruger, Smolinski
So if you had $50,000 to invest, where should you put it and how much should you allocate to each asset class? He recommends the following: 35% to Invesco QQQ Trust Series 1 ETF; 25% to options trades; 15% to SPDR S & P 500 ETF; 15% to ProShares UltraPro Short QQQ ETF ; 5% to iShares Russell 2000 ETF ; and 5% cash. He added that he would look to cash in on artificial intelligence via the Invesco QQQ Trust Series 1 ETF. He broke down his 40% (or $20,000) stock allocation this way: $10,000 into U.S. stocks, $5,000 into Europe, and $5,000 into Asian emerging market stocks. Hedge against volatility Pannell, who would have a 15% hedge reserve for the ProShares UltraPro Short QQQ ETF, said investors need some downside coverage.
Persons: they're, Jay Hatfield, Ryan Pannell, ProShares, iShares Russell, Victor Kuoch, hasn't, Pannell, Wade Guenther, Treasurys Raymond Bridges, CNBC's Ganesh Rao Organizations: CNBC, Infrastructure Capital Advisors, Nvidia, Microsoft, Tech, , Condors, Wilshire, Bridges Capital Locations: U.S . Federal, Asia, Pacific, Europe, U.S, Taiwan
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