Scaling Calendar in CELG

[Steven Place]

The stock has seen a strong breakout to new all time highs and earnings are out of the way. While I think this can go higher, now is a good time to start some reverting calendars.

Buy to open CELG Dec/Jan 100 put calendar for 1.05

If CELG moves to 105 or 95 we will ADD to the trade.

[Steven Place]

105 is hit, we are adding to this:

Buy to open CELG Dec/Jan 105 put calendar for 1.25 or lower.

Trade is looking good so far, the main risk is see is if the IV drops. 30 day IV is sitting right around 30%, and the lows in Aug are at 25%. So if we see a 5% drop then we could be in a trade that doesn’t have the best profit potential.

I’ll add a 3rd round of calendars at 110

[Steven Place]

CELG is hitting our first target of +15%. Either take the trade off here or add some bullish deltas (I like the Jan 115 call) to remove some of the upside risk.

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