April 19, 2021 Terry’s Tips Trade Alert - Earnings  Eagle Portfolio

We are opening positions in American Express (AXP), which reports earnings before the bell on Friday. The expected move based on current options prices is considerably larger than the historical post-earnings move. We will begin by allocating less than half the portfolio to these trades. That way, we can add a spread or two to adjust delta before earnings:

BTO 1 AXP 18Jun21 150 put (AXP210618P150)
STO 1 AXP 23Apr21 149 put  (AXP210423P149) for a debit of $4.05 (buying a diagonal)

BTO 1 AXP 18Jun21 145 put (AXP210618P145)
STO 1 AXP 23Apr21 147 put  (AXP210423P147) for a debit of $2.70 (buying a diagonal)

BTO 1 AXP 18Jun21 145 put (AXP210618P145)
STO 1 AXP 23Apr21 145 put  (AXP210423P145) for a debit of $3.40 (buying a calendar)

BTO 1 AXP 18Jun21 145 put (AXP210618P145)
STO 1 AXP 23Apr21 143 put  (AXP210423P143) for a debit of $3.85 (buying a diagonal)

BTO 1 AXP 18Jun21 150 call (AXP210618C150)
STO 1 AXP 23Apr21 149 call  (AXP210423C149) for a debit of $3.20 (buying a diagonal)

BTO 1 AXP 18Jun21 150 call (AXP210618C150)
STO 1 AXP 23Apr21 152.5 call  (AXP210423C152.5) for a debit of $4.50 (buying a diagonal)

BTO 1 AXP 18Jun21 155 call (AXP210618C155)
STO 1 AXP 23Apr21 155 call  (AXP210423C155) for a debit of $2.95 (buying a calendar)


Be prepared to change this (these) price limit(s) by $.05 or more in order to get an execution.

Happy trading.

Terry