Tuesday, March 31, 2015

LULU

LULU Iron Condor Earnings Play (+51.60)

Reason for trade -- high IVR (Implied Volatility Rank) day before earnings

Entry: Sell strangle (undefined) or iron condor (defined) just outside the weekly expected move (EM) for earnings. An additional put spread was sold creating an unbalanced condor. Total sale was for 1.02 credit.

This is a two day option play - below is the P/L statement and strike detail for the trade


Exit: Net profit on the trade $51.60 for 2 day hold, approximately 50% profit.

Exit on day of earnings as IVR dropped from 60+ into the low 20s.





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