Explain the Hain

I did a trade today in $HAIN that filled my inbox with questions so I thought I would do a quick post. Here was the trade:

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The trade breakdown is this:

I am short the 80 Calls
I am short the 85 Puts
This was for a beefy $7.90 credit for September expiration

So why this trade? Since earnings for this quarter are behind us, the stock should see some profit taking and new buyers come in. However, I liked the premium so I wanted to be a Seller.

By selling this Strangle I have a range of $77.10 to 87.90 to work with. If price continues to hold these levels, the next step is to start easing in buying some stock.

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