October 21, 2019  Terrys Tips Trade Alert – Earnings Eagle  Portfolio

PG announces before the open tomorrow.  The options are pricing in a greater change than the historical change.  These spreads should make a gain even if the price changes by a greater amount than the historical change.  With any luck, we will close out these spreads on Friday for a gain:

 

BTO 1 PG 20Dec19 115 put (PG191220P115)
STO 1 PG 25Oct19 115 put (PG191025P115) for a debit of $1.30  (buying a calendar)  

BTO 1 PG 20Dec19 120 put (PG191220P120)
STO 1 PG 25Oct19 117 put (PG191025P117) 
 a debit of $2.71 (buying a diagonal)

BTO 1 PG 20Dec19 120 put (PG191220P120)
STO 1 PG 25Oct19 118 put (PG191025P118) for a debit of $2.34 (buying a diagonal)

BTO 1 PG 20Dec19 120 call (PG191220C120)
STO 1 PG 25Oct19 119 call (PG1
91025C119) for a debit of $1.19 (buying a diagonal)

BTO 1 PG 20Dec19 120 call (PG191220C120)
STO 1 PG 25Oct19 120 call (PG191025C120) for a debit of $1.68 (buying a calendar)

BTO 1 PG 20Dec19 120 call (PG191220C120)
STO 1 PG 25Oct19 121 call (PG191025C121) for a debit of $2.08 (buying a diagonal)

 

BTO 1 PG 20Dec19 120 call (PG191220C120)
STO 1 PG 25Oct19 122 call (PG191025C122) for a debit of $2.41 (buying a diagonal)

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

 

Happy trading.

Terry