Trading strangles can be very profitable trade if done correctly. Trading strangles during company earnings can be even more profitable. But is can also be quite dangerous. I am posting a new trade for you all to watch, follow or paper trade.
For tomorrow morning I am placing a new trade – strangle against STX:
STO 1 STX May5 43.00 put
STO 1 STX May5 54.00 call
@ 1.43 credit limit day
STX reports earnings on April 26 before the market open. The earnings may shake the stock but I believe this trade has strikes far enough to survive any violent move. Even if the stock tanks or jumps, I hope be far enough that a potentially ITM strike of either a call or put will not be deep ITM so it will be easy to roll.