$41/share Short Call secured into Earnings
A quick recap on disciplined options positioning heading into binary events:
On October 21, I opened a short call position collecting $41/share in premium, capitalizing on spiked Implied Volatility right before the earnings report.
Key Takeaways:
1. Full Profit Protection: The strategy did its job. Post-ER volatility crush wiped out the extrinsic value, allowing us to capture the full $41/share profit.
2. Lowering Cost Basis: Rather than passively holding through the event, monetizing volatility provided a direct cash cushion that fundamentally improves the overall trade structure.
3. Next Step — Accumulation at $200: With the premium fully banked and capital uncommitted, the next focus is patience. I'm actively looking to scale in and add to the position around the $200 mark.
Trading isn't about guessing direction; it's about managing risk and executing high-probability setups.
Best of luck to everyone navigating this earnings cycle! Let's get it. 🤝🔥
