Going to take off this trade for a profit.
| Full Time Profits Order Ticket | ||||
| Type | Asset | Duration | Strike | C/P |
|---|---|---|---|---|
| BTC | AAPL | 21 Oct 16 | 115 | Put |
| STC | AAPL | 18 Nov 16 | 115 | Put |
| Total Credit: | 2.25 | |||
| Full Time Profits Order Ticket | ||||
| Type | Asset | Duration | Strike | C/P |
|---|---|---|---|---|
| BTC | AAPL | 21 Oct 16 | 110 | Put |
| STC | AAPL | 18 Nov 16 | 110 | Put |
| Total Credit: | 2.03 | |||
14% return on risk.
Now look– here’s the cool lesson I’ve been trying to teach on this trade.
Remember earlier how this trade looked like garbage on the analytics?
Here’s what it looks like now:
This is because the TERM STRUCTURE is changing because of earnings.
The October options are decaying more and the November options are decaying less than what the analytics were pricing in.
That’s because the November options continue to have TIME PREMIUM replaced by EVENT PREMIUM due to earnings.