Earnings Trade review, an in-progress look at Zillow

A quick review of where my $Z position stands now that earnings are out. For a historical look at my positions, feel free to view my weekly updates on my Blog. Now on to my position.

I am long the stock at 68.72 from 7/22
I have had an August 80/75/65 Collar but adjusted that this morning:


After this adjustment, the Collar is now:

Short the August 90 Call
Long the August 85/65 Put Spread

Price is currently hanging out at the 82.5 level in A/H so the long piece of the Put Spread is ITM (in the money). This component of the Collar is doing its job to soften the impact of the after hours pullback.

So now what? Here are a few choices I have for tomorrow if price stays in this area:

1) Do nothing. The Collar is working so let it ride
2) Close the entire trade & take the gains
3) Adjust the short August 90 Call down to 85, take some $ off the table

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