Unpacking a trade in Trip Advisor

One stock that I was monitoring this morning was $TRIP as it approached the $70 level and the Gap below. I elected to do a unique trade where I am long stock and sell a Straddle.

Here is my trade:

20130815-162522.jpg

Here is what I am looking for:

I want price to hold this $70 level, looking for a “Pin” on Friday (tomorrow)
I want to keep as much of the premium collected as a cushion on the trade
If price does hold well, I will resell the same strike Straddle in a further out expiration (I’ve done this several times this year, like $JCP & $EWW)

2 thoughts on “Unpacking a trade in Trip Advisor

  1. I guess having a FTD on 8/16 is fine too, caps the gain at 72.55 which works fine for a 1 day trade. 😉

  2. BtC Aug 70 straddle & StO Sep 67.5/70 Strangle for 3.40 credit. Cushion now 5.95 and a little more wiggle room for any downside move.

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