Tuesday, March 31, 2015

MON

MON earnings play (+38)

Reason for trade -- high IVR (72), earnings come out in 2 days. Sell IVR around the expected move range for MON.

Entry below is the trade structure, 109-118 iron condor 6pts wide, EM 110-117.5, sold for a 0.67cr. Plan is to exit day of earnings (released on market open) on expected IV crush.



Exit:
Earnings released at market open and stock opened in the range of 113.62 - 116.1, staying inside the expected move range. IVR crushed to 44.

The iron condor was bought back for 0.25db, for a net profit of $33.28

Trade summary:



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