May 8th Update

The markets were not kind to traders last week. The fed surprised them with unexpected dovish comments (causing an outsized rally). Then the news was digested the next day and we saw the previous day gains erased and then some. This whipsaw was tough to stomach for swing traders that only follow daily price action. For day traders with a bias, it was great action if they were on the right side or disastrous if they were not.

I, along with the Optionsplayers.com Swing Trading / ER Strategies Group (fee paid), had no idea how the market would behave during the week. However, we had a set list of candidates that on average performed at a 75% win/loss ratio and a written plan on how to tackle the opportunities. We were prepared for an emotionless trading week – The following was presented on Sunday evening during a live stream:

Earnings Iron Condors Candidates for Upcoming Week of 2 – 6 May

NXPI entry Monday, 2 May (Past performance 4 out of 4 wins), exit EOD on Tuesday, 3 May 

DVN entry Monday, 2 May (Past performance 3 out of 4 wins), exit EOD on Tuesday, 3 May 

MOS entry Monday, 2 May (Past performance 3 out of 4 wins), exit EOD on Tuesday, 3 May 

AMD entry Tuesday, 3 May (Past performance 3 out of 4 wins), exit EOD on Wednesday, 4 May

SBUX entry Tuesday, 3 May (Past performance 3 out of 4 wins), exit EOD on Wednesday, 4 May

MET entry Wednesday, 4 May (Past performance 4 out of 4 wins), exit EOD on Thursday, 5 May

COP entry Wednesday, 4 May (Past performance 4 out of 4 wins), exit EOD on Thursday, 5 May

SQ entry Thursday, 5 May (Past performance 3 out of 4 wins), exit EOD on Friday, 6 May

NET entry Thursday, 5 May (Past performance 4 out of 4 wins), exit: EOD on Friday, 6 May

Specific instructions were reviewed that placed rules behind the above candidates that only entered if option volume of the day was over 50 contracts and slippage (the difference between the bid/ask was less than 11%. As such, MET, COP, and NET were not entered.

Earnings Iron Condors are positions that are held for 24 hours and take advantage of implied volatility (IV) crush. We sell off the radar candidates when their IV is high and buy it back when it is low.

One additional opportunity was identified for a post earnings play on AAPL. An out of the money call butterfly was planned for entry on Monday.

The following are the results of the above along with all plays so for for this season. Only one position remains open – 3/4 of the AAPL call butterfly’s have been sold (profit is locked in) and will be held until near expiry.

Our next livestream will be held on Sunday evening, May 8th. A list of candidates has already been mailed to our group.

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