RAX Earnings Play

11/11/13 -Closed

Here's an Iron Condor based on an earnings play in RAX.

The screen capture is from the morning after (cha-ching!) so ignore the P/L and volatility figures. The price slices represent the MMM of +/-5.29, while a volatility contraction of 75 points is expected (130% to 55%).

• Iron Condor, RAX @49.14
• STO -1 Nov 55 C (80% OTM)
• BTO +1 Nov 57.5 C
• STO -1 Nov 42.5 P (84% OTM)
• BTO +1 Nov 40 P
• Credit = 0.70
• Risk = 180
• ROR = 39% in 4 days

11/15/13 Update

Closed at 50% max profit.

• BTC Nov 42.5/40P @ .35
• Net = $35, 19% in 4 days