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CAT at 211.18
I’m going to set up a Call Diagonal spread ahead of earnings. I’m selling an OTM option in 20AUG expiry and I’m buying an ATM option in 17SEP expiry. I am going to risk 50-70% of premium paid for this trade.
Risk Profile:
Order Ticket:
CAT is at 212.60
I’m going to roll short 217.5 call down and out from 20AUG to 27AUG, 217.5 to 215
This will reduce risk (since I’m collecting a credit) and keep me in the trade a bit longer.
Risk Profile:
Order Ticket:
CAT at 218.10
I’m going to book this trade and look for another set up
Risk Profile:
Order Ticket:
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