November 4, 2019  Terry’s Tips Trade Alert #6 – Earnings Eagle  Portfolio – debit s  

  

We have almost $1700 spare cash which we can put to work.  DIS reports after the close tomorrow.  The options are pricing in a 3.8% change while the recent average move has been only 2.1% after earnings.  These trades should make gains if the move is less than 3% in either direction:

 

BTO 2 DIS 13Dec19 128 puts (DIS191213P128)

STO 2 DIS 8Nov19 128 puts (DIS191108P128) for a debit  of $1.90  (buying a calendar)

 

BTO 2 DIS 20Dec19 130 puts (DIS191220P130)

STO 2 DIS 8Nov19 130 puts (DIS191108P130) for a debit  of $2.22  (buying a calendar)

 

BTO 1 DIS 13Dec19 132 call (DIS191213C132)

STO 1 DIS 8Nov19 132 call (DIS191108C132) for a debit  of $1.72  (buying a calendar)

 

BTO 2 DIS 13Dec19 133 calls (DIS191213C133)

STO 2 DIS 8Nov19 133 call (DIS191108C133) for a debit  of $1.60  (buying a calendar)

 

BTO 2 DIS 20Dec19 135 calls (DIS191220C135)

STO 2 DIS 8Nov19 135 calls (DIS191108C135) for a debit  of $1.67  (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