Jade Lizard Trade Expiring Just Prior to Earnings

2 апр.

RBLX
'Jade Lizard' Trade (expires JUST before earnings)

Call Credit Spread:
+1 $44 call 5/3
-1 $43 call 5/3

Short Put:
-1 $37 put 5/3

Credit received: $253

Outcomes @ Expiration:

1) If share price is above $44, then $153 profit (close call credit spread for $100).

2) If share price is between $37 and $43, then $253 [max] profit achieved (via credit received).

3) If share price is below $37, then I will be assigned to buy 100 shares @ an avg cost of 34.47/each. Next step: sell calls until assignment.

(With a jade lizard, there's no risk to the upside).