Spread Sale in GOOGL

[Steven Place]

Warning: this trade will be held through earnings so is a little bit riskier.

GOOGL is seeing volatility expansion along with a price drop. We are at key support levels and although I was going to wait for 560, the IV rise is giving me a decent entry in some bull put spreads

Here’s the trade I like:

Sell to open GOOGL Nov 530/525 bull put spread at 1.00

Add to the trade at 1.50

Buy to close at 0.50

[Steven Place]

GOOGL got hit really hard but for some reasdon the trade is doing OK. Maybe because the skew changed or something.

Anyways, our add point at 1.50 is here, but instead of doing that I’m going to roll and add. This will reduce my max returns but will also give me more wiggle room into this earnings event.

Buy to close Nov 530/525 put spread for 1.40

Sell to open FULL SIZE Nov 510/505 put spread for 0.90 or higher

I am HOLDING THROUGH EARNINGS

[Steven Place]

After a little downside heat, GOOGL is back up into the 550’s. Going to use this opportunity to close the trade for a profit and stalk for entries in December options.

Buy to close GOOGL Nov 510/505 bull put spreads for 0.30

The trade is finishing with about an 8% return on max risk, not the best but it wouldn’t be that much as we had to roll the trade down in strikes.

[Author]

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