Updated:

Straddle

APOL 43 JUL 11 Call at 4.45
APOL 43 JUL 11 Put at .15
Net: $4.60
You could have still kept the Put side open has it does expire in JUL, but the net profit was good.


APOL Earning Straddle as been placed a day early, due the earnings calendar we looked at stated it was after the close of today. No matter, good entry price of this this straddle.

APOL Earnings release 6/30/2011 (Market close on 4th of July Holiday)
Market Expects: $1.33

APOL 43 JUL 11 Call at 1.95 - Delta .43
APOL 43 JUL 11 Put at 1.89 - Delta .57
Cost: 3.84

The total risk of the trade is $3.84. This is 100% premium risk. That means the stock must move $3.84 either way for us to breakeven. So if the stock stays within a range of 44.95 to 41.11, we lose!