PPDI Earnings : Flat (Profit 1.06%)

I invested in the PPDI. There was huge gyrations in the stock today but I was able to close this trade for slight profit. That’s the beauty of playing backspread for earnings.


It was able to absorb huge move. This trade had opportunity to earn more if I would have placed the order at mid point for my short call that I mistaken bot back straight (mid was $1.60 vs wrongly placed ask at $1.75).

Opened – Short 1 32.5 call (@2.52) and Long 2 35 calls @ 0.95, Net credit =$0.62/spread
Closed – Bot back 32.5 call for 1.75 and sold 35 calls for $0.575 = Debit =$0.60/spread; Profit = $2 on $188 investment i.e. 1.06% profit.

Profitable trading, OptionPundit







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