GOOG Earning plays : 3 Profit out of 4

Here are the results of the 4 trades I placed to benefit from the google earning event:

Here is the first trade that I opened on Jan 29^th with a Bull Put credit spread strategy. I sold for $4.05 and bot it back for $3.40, before market close. This resulted in 10% profit.
2^nd trade was based on what OP reader Avi had suggested here. My credit was $3.24 and I bought it back for nearly $0. So I am able to keep all the credit received. The returns on margin are 6%.
Here is the 3^rd trade. Just before the market close the volatility was very high. I thought to take advantage of high IV and open an Iron Condor for which shorts were more then 10% beyond the closing price. I sold $570/580/440/430 Iron Condor for $1.40. I bought it back for $0.20. The returns are $1.20 on $8.80 margin i.e. 13.6%.
4th trade i.e.backspread is currently losing money. Google is continuing to go down, currently it is $14 down. If it goes down by further $10 by Feb 16th, I will be making money on this trade as well.
Please note, all the above trades I experimented via paper-trade so as to learn and craft my strategies for furture events like this (Not necessarily only Google).

Profitable trading, OptionPundit

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GOOG Earning plays :4th and final win (all win) at OptionPundit: February 6, 2007 at 7:41 am
OptionPundit | GOOG - How about playing Google earnings?: July 17, 2007 at 10:50 am

{ 2 comments… read them below or add one }

1 ty February 1, 2007 at 12:01 pm: OP,

Good sharing. Profitable trade for both directional and non directional
play.

Waiting for more strategy sharing from you.
2 Jackie February 9, 2007 at 8:05 pm: How about a play taking advantage of the volatility crush the day
after earning announcement. For example, on the morning after the
announcement both calls and puts decrease in price. Put options cost
less than $1. As the morning progressed, volatility came back and
the stock traded lower. Those put options increased more than 400%.
Happened again today with MA earning announcement. Also happened
after AAPL earnings announcement. I like these kind of plays. It takes
the complication out of guessing before earnings what will happen.
Take advantage of the volatility crush AFTER earnings.