Micron $MU Earnings tonight 👀 Implied move = $77+ Average move (2yr back test) = $97+ Currently trading at ~$1070 I found a trade that makes money: As high as $1230 (+$160/12%) As low as $950 (-$120/11%) Did I just hack the matrix or is this too good to... be true???show more

Small W 30 -> 36 But easy money. Zero drawdown✅

Bro discovered diagonal spreads

LMAO almost like I knew what I was doing 🤪

Hmm, lets see, all too speculative for my taste but surely interesting. Long myself but long long

This is the opposite of speculative. You probably aren’t familiar with these types of trades but I wouldn’t shrug it off as speculation. Run the numbers back test the data and come to a conclusion based on implied outcomes for each. Not trade advice but 100% not speculation

Ya, im with you, prob wrong choice of words ☺️ For me it is, the numbers do make sense as you present them, im just not there in terms of options. So for ME it is speculative. Need the means in Sweden to do these typ of options calculations and some skin in the game 🙃

Haha fair 😂 IBKR might be worth a look. You guys already have better pastries. We need something to keep this competitive.

FYI @PaperGainsInc , in Sweden I think Mini futures, Turbos and certificates are in heavy use. Do you have them over there? It is more or less leveraged products but instead of time dependent per se, they are now-adapted

We have mini futures but they’re not that mini… like 1/10th size of index. CFD’s I believe illegal here 😅

dont get smoked

On paper looks good. In reality this useless calculator doesn’t show the IV crush that happens in the morning. If opens at both edges, Will make little $ but open flat, while shows good green, possible to actually be a small loss. Been there, done that.

Good thing I did the calcs

Lets see tomorrow morning. I have more than 30 executions on dual calendar spreads and probably 5 max paid something worthy. Hope you actually took it and pays well tho!

Haha! Nice. I’ve been running this strategy for a little under 10yrs. Ideally I’ll do straight across calendars but this one I didn’t like after modeling like that. I have maybe like 30,000 executions so nothing crazy but I’m also not looking for a home run and I’m not looking to manage for more than 1 trading session when it comes to IV trades like this. I’ll take anything between $500-$750 per and I’ll have resting orders working before the market opens. That may be the difference 🤷🏻‍♂️

Dont get me wrong! I’m not saying its a bad strategy for small and consistent hits. All I am saying is robinhood’s calculator is trash. Cheers, dude.

It is 100% trash 🤪 but it shows a clean UI for le noobs

Yeah, IV crush tends to... Well, crush DC's after earnings. The sag in your "tent" can go under water. Still possible to make money if you get a good move towards one of the tent poles, but also possible to turn your circus tent into 2 M&M's on an ironing board. Good luck!

How does IV crush effect that payout graph?

Basically fast forwards it to near expiration. Trades like these *through earnings are only meant to be held for 1 trading session. I can simulate payouts in a sec and I’ll reply here

Genius. You basically cover all possibilities here. Is this essentially an IC ?

Not an IC. I’m not using any margin. It’s a variant of a time spread called a double calendar

Very cool. I’m gonna check it out.