Terra_Incognita
10:54

$ADBE STRANGLE 261120 CALL 275.0/PUT 205.0$ 1️⃣ Why am I making this trade now?

ADBE short strangle expiring 20th Nov

Short call $275

Short put $205

Decent $5.5 credit collection expanding profit range to $75 

Earnings on 9th Dec so the setup skipped earning period reducing potential volatility. 

ADBE fell 32% year to date but also is up 23% since late June. 

Believed the price will face resistance as most moving averages are still bearish. 

Short strangle sets the boundary of where I think ADBE might land during this period so as long as it stays within range, I'll be set.

2️⃣ What’s my plan from here?

take profit separately by each leg as it hit La profit target of between 70-90%.

Cut loss if the leg hits strike price. 
ADBE Strangle
10-09 00:59
US275.0/205.0
SidePriceRealized P&L
Credit
Open
-5.35--
Holding
ADBE STRANGLE 261120 CALL 275.0/PUT 205.0
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  • JackPowell
    ·11:32
    TOP
    That 5.5 credit versus a 75-wide range is clean, but vega risk still feels a bit underpriced here. If IV percentile is only middling, the move risk can show up faster than theta helps
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    • Terra_Incognita: 
      Thanks. You’re right up there.
      If any Vega spike is probably due to market risk.
      Earnings won’t be due till 9 Dec so less one headache among many
      16:39
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