Terra_Incognita
10-06 23:34

$META RATIO_SPREAD_1X2 261030 CALL 845.0/CALL 850.0$ 1️⃣ Why am I making this trade now? 

META ratio spread for premium collection. 

Buy 1 call $845 strike

Sell 2 calls $850 strike 

Earnings on 4th Nov so the setup expires on 30th Oct to avoid binary outcome that might jeopardise the trade. 

Collect a decent $5.35 premium over 24 days.

The strike of $845 is well above current trade at $742. And is also above expected move of +/- $89 during this period. 

IV is relatively high at 45% and my expected probability of this trade is around 80-90%.


2️⃣ What’s my plan from here?

Take profit when 70-90% of premium collected, 

Or cut loss if hit the strike or 1.5x of premium collected. 

Or take profit/cut loss when trade is less than a week from expiry for risk management 
META Ratio Spread 1x2
10-06 23:19
US845.0/850.0
SidePriceRealized P&L
Credit
Open
-5.35--
Holding
META RATIO_SPREAD_1X2 261030 CALL 845.0/CALL 850.0
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Comment（3）

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  • cheerzy
    ·10-07 00:22
    TOP
    Pre-earnings premium grab makes sense here. The real risk is that 845 gets tested early and the short 850s start biting before theta does lol
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    • Terra_Incognita: 
      That’s the risk of the trade I was willing to take 🤞
      10-07 17:51
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  • CINDYTAN
    ·10-07 04:28
    [Miser]
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