MSFT reports earnings today in AH. My play is the November 12 $27 Call @ $2.69 & the November 12 $28 Put @ 0.28.
Looking for a drop below $28 on a bad report or a rally to $31.65 on good news.
Down 0.45 per C:P on my virtual account. Premiums from earnings fell too much. I'm pretty sure like I said in my previous post, your breakevens were below 28, and above 30 based on my calculations.
Yeah, this is going to be tricky. On the call they revealed that they have $500M in unrealized revenue for Windows 8, and no forecast for Surface.
So one good piece of news and another bad, or good depending on how you want to think about it.
When they said they had $500M in unrealized revenue the stock went from $28.50 to $29.10, and then fell down from there on the Surface outlook. I'm going to try to sell at open, but if I don't see a price I like I may just get a sense of where the market is going and wait till 3:55PM to sell off.
For some reason I can't comment on your very last comment, but I'll be tracking this trade closely, and adding it to my virtual portfolio using your 3:1 P:C ratio. I haven't made a strangle trade before, so I want to see how this fairs out. Thanks for the suggestion though.
Not really following MSFT, but why do you think they are going to the upside. I see that the analyst estimates are fairly low, but I don't see the Windows 8 making much of any impact on the market. Anyhow, what is your play on this, depending on the direction this stock goes? When do you plan to sell both the calls and the puts? I've never played a strangle before so I'm legitimately curious.