May 3, 2021 Terry’s Tips Trade Alert - Earnings  Eagle Portfolio

We are opening up spreads in Walt Disney (DIS), which reports after the close on May 13. Option prices are currently pricing in a move greater than the average post-earnings move. We are going out to the 14May expiration because the theta will be slightly greater than trading the 7May series. Moreover, we won’t have to roll out later this week:

BTO 2 DIS 18Jun21 175 puts (DIS210618P175)
STO 2 DIS 14May21 175 puts  (DIS210514P175) for a debit of $2.20 (buying a calendar)

BTO 2 DIS 18Jun21 180 puts (DIS210618P180)
STO 2 DIS 14May21 180 puts  (DIS210514P180) for a debit of $2.65 (buying a calendar)

BTO 2 DIS 18Jun21 185 puts (DIS210618P185)
STO 2 DIS 14May21 185 puts  (DIS210514P185) for a debit of $2.85 (buying a calendar)

BTO 2 DIS 18Jun21 190 calls (DIS210618C190)
STO 2 DIS 14May21 190 calls  (DIS210514C190) for a debit of $2.85 (buying a calendar)

BTO 2 DIS 18Jun21 185 calls (DIS210618C185)
STO 2 DIS 14May21 185 calls  (DIS210514C185) for a debit of $2.95 (buying a calendar)

BTO 2 DIS 18Jun21 195 calls (DIS210618C195)
STO 2 DIS 14May21 195 calls  (DIS210514C195) for a debit of $2.50 (buying a calendar)

BTO 1 DIS 18Jun21 200 call (DIS210618C200)
STO 1 DIS 14May21 200 call  (DIS210514C200) for a debit of $2.00 (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