Tuesday, March 31, 2015

TSM

TSM short strangle

Reason for trade -- TSM IVR is ranked at 100%.  Looking to sell IV on expected reversion and capture time decay. Earnings is April around strike expiration.

Entry: Trade structure is shown below.  Sell Apr 17' 22-24 strangle for 0.85cr, with profit zone around covering the expected move. Looking to capture 50% of this credit.


Exit:

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