There are some wonderful earnings play that one can take advantege of. Worth mentioning are CELL, BOBJ, EXBD, WIRE, MFLX, TZOO, APOL, CI and ICE. Backspread could be a good idea for non-directional but one has to choose right strike and ratio. Personally I have chosen MFLX and CELL to play overnight.

Cheers and have fun profiting tonight, OptionPundit

Based on the tip from downtrader’s blog, I decided to play “bullish” direction on Target (TGT). There were two choices; either I could have gone long by buying straight call or via spreads. I chose later and opened a credit spread (Feb 60/57.5 bull put spread for $0.50/$2.00 per spread. I sold it for $0.25 per spread by collecting 50% of my premium resulting in $0.25/$2.00 profit i.e. 12.5% profit for 1 week holding. Here are the chart and transaction details       

Profitable trading,

OptionPundit 

Here is a quick update on my Google earning play. Overall I played 4 trades for google and three were winner that I called out here. The only trade that was in loss zone was this one. Last night when google fell, $14, it also became profitable. If google stays where it is or fall further below by Feb 15^th, I will keep all the credit received i.e. $855 over $3145 margin required and that’s cool 27%. Here is how the current chart looks like

White line represents as of today and green line, as of expiration. Once I close it, I shall share what price I closed. Till then, Cheers and profitable trading, OptionPundit