An Earnings Trade in American Express

I did a trade for $AMEX Earnings on 01/16 that involved the January Options. Here is the trade:

AXP_EarningsHere is the breakdown:

  • I am short the January 87.5 Calls
  • I am short the January 87.5 Puts
  • This was done for a $2.08 credit

The goal of the trade:

Monitor price to stay in the range of $85.42 to $89.58 thru expiration on Friday, 01/17/2014. A Pin at $87.50 is most ideal to keep almost all of the premium collected (hanging around there in after hours but expect some movement tomorrow – one side will win & I will need to buy it back).

4 thoughts on “An Earnings Trade in American Express

  1. I added a Stop at $91. I then raised the Stop to $92.50 just a bit later (9:45 am CST 1/17).

  2. Stop hit on 1/17 for +$4.50 so this changes things a bit. Cushion is now $8.03 for the Short Jan 87.5 Strangle range.

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