Do not want to mess with the earnings so closed this trade for $1.5 for a 25% profit of max profit. I wish it had gone up much higher so I could have convert this one into an iron condor.
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This one can be a possible earnings play but we will see how it goes in the next week. CMG earnings are due on Oct/18 which falls in Oct expiry. Volatility is high and we like to sell premium on OTM strikes. I think it will be hard for CMG to break down heavily in front of earnings and we might go up soon here considering the uncertain nature of the earnings.
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| CMG weekly chart |
Trade:
Sell 1X $275 Oct put
Buy 1X $270 Oct put
(Got a credit of $2)
In the best case scenario, I would love to convert this one to an iron condor if CMG goes up too high.
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