JonnyBoi
11-27
$DELL VERTICAL 251128 CALL 149.0/CALL 125.0$ 


This is one side of a iron butterfly I sold a day before DELLs earnings, to capitalize on the earnings vol crush. 

I bought very cheap 5 delta OTM hedges, 1 put and 2 calls, just in case to protect against outlier moves.

DELL Vertical
11-26 22:47
US125.0/149.0
SidePrice | FilledRealized P&L
Debit
Close
5.00
1
--
Closed
DELL VERTICAL 251128 CALL 149.0/CALL 125.0
Trade Feed: Who is your favorite trader?
Come to the Trade Feed Topic to find more trading opportunities! Also, please feel free to recommend and introduce fellow Tigers to the "hidden gem traders" that you've discovered!
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • Megan Barnard
    11-27
    Megan Barnard
    Won’t AI server backlog news push DELL past your 149 call strike?
    • JonnyBoi: 
      that's why two OTM call options were bought to hedge against outlier moves
  • Jo Betsy
    11-27
    Jo Betsy
    Isn’t 2-call hedges overkill vs. a single put for downside?
    • JonnyBoi: 
      Unless DELL flopped earnings, the assumption was that any downside moves were likely to be overreactions which would mean revert, but a positive earnings surprise might send the stock flying permanently.

      Thus the overhedging on the call side instead of the put side. 🙏

  • CareyDunlop
    11-27
    CareyDunlop
    Smart delta hedge setup lah, vol crush play looks solid! [得意]
  • Wade Shaw
    11-27
    Wade Shaw
    5-delta hedges are genius—cost almost nothing for black-swan protection!
  • Phyllis Strachey
    11-27
    Phyllis Strachey
    DELL’s post-earnings IV crush (42% drop!) makes this iron butterfly gold!
Leave a comment
7
174