Could I get a consensus on some credit condors for earnings on big companies like NKE that shouldn't have a ton of price movement? Is there a risk piece that im missing other than large PA?
credit condors on mega caps right before earnings is basically picking up pennies in front of a steamroller, the IV crush helps but all it takes is one surprise guidance revision and you’re toast
the real risk isn’t just price action it’s the liquidity drying up when you need to adjust, spreads go wide and you’re stuck holding a position that’s moving against you fast
NKE specifically had that weird drop last quarter off China comments nobody saw coming, I’d rather sell premium on something with less binary event risk
LaconicB on
I go with short strangles or straddles. Last one was BB earnings, easy money. Might sound risky but I’ll take that for the returns. Works much better than short condors from my experience.
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credit condors on mega caps right before earnings is basically picking up pennies in front of a steamroller, the IV crush helps but all it takes is one surprise guidance revision and you’re toast
the real risk isn’t just price action it’s the liquidity drying up when you need to adjust, spreads go wide and you’re stuck holding a position that’s moving against you fast
NKE specifically had that weird drop last quarter off China comments nobody saw coming, I’d rather sell premium on something with less binary event risk
I go with short strangles or straddles. Last one was BB earnings, easy money. Might sound risky but I’ll take that for the returns. Works much better than short condors from my experience.