DE (IVR/IV 72/40) announces earnings on Wednesday morning before market open, so if you're going to play this, look to put on your setup on Tuesday before market close.
Here's my tentative setup, which is subject to tweaking depending on whether it moves much in Tuesday's session:
Dec 11th 68/81.5 short strangle
POP%: 75%
Max Profit: $107/contract
BPE: ~$836
BE's: 62.93/82.57
As usual, I'll look to take this off at 50% max profit and redeploy the buying power elsewhere (assuming I can find something).
Here's my tentative setup, which is subject to tweaking depending on whether it moves much in Tuesday's session:
Dec 11th 68/81.5 short strangle
POP%: 75%
Max Profit: $107/contract
BPE: ~$836
BE's: 62.93/82.57
As usual, I'll look to take this off at 50% max profit and redeploy the buying power elsewhere (assuming I can find something).