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Option Traders Cash Early in $AZO
In our Thursday, April 19th we suggested a potential Iron Condor option trade in Autozone ($AZO), with one condition: that they exit the position before earnings of one of their main competitors…ORLY! We entered the 572..5-627.5 Iron Condor. This was selling the 572.5 puts and 627.5 calls and buying the 562.5 and 637.5 calls as […]
In our Thursday, April 19th we suggested a potential Iron Condor option trade in Autozone ($AZO), with one condition: that they exit the position before earnings of one of their main competitors…ORLY!
We entered the 572..5-627.5 Iron Condor. This was selling the 572.5 puts and 627.5 calls and buying the 562.5 and 637.5 calls as protection.
On April 19th, we collected about $1.95 in premium per Iron Condor option spread.
On Tuesday, Wednesday, April 25th, the spread was trading about $1.05 where some subscribers took it off. Email snapshot below:
So if they took it off at $1.05 then that was a $0.90 profit our of $1.95 or 46% of premium collected.
If subscribers didn’t take it off as suggested then they got REALLY lucky!
With ORLY earnings coming out after the close on Wednesday the market initially liked the earnings and guidance. Both ORLY and AZO were up big… AZO opened at $641 which was at the upper end of our protection and proceeded to trade all the way over $650.
The lucky part is that if they did nothing , the stock fell all the way back into our range to close at $619.29 that day after breaking the 50 day moving average. With stock trading at about $615, traders were able to take off their short calls for profit. They were able to lock in profit on both sides of the Iron Condor.
