Autozone (AZO) is due to have earnings on 5/26/09. Generally I like to have the earnings in the back month, in this case the June expiration cycle. With that in mind I placed a double calendar on 4/20 to hopefully capture some time decay.
4/20 BTO AZO May/Jun 170 CALL $4.45
4/20 BTO AZO May/Jun 155 CALL $4.15
4/29 STC AZO MAY/JUN 170 CALL $5.35
4/29 STC AZO MAY/JUN 155 CALL $4.40
Total profit = 9.75-8.60= $1.15
ROI = 13.37%
This trade worked out primarily from some good timing. IV in the front month dropped several points since I first placed the trade.
Showing posts with label double calendar. Show all posts
Showing posts with label double calendar. Show all posts
Wednesday, April 29, 2009
AZO Earnings Calendar
Subscribe to:
Posts (Atom)
Posts
