• Subscription Plans Available

    PayPal and All Major Credit/debit Cards Accepted
    PayPal Logo

Free Earnings Trade of the Week: Six Flags Entertainment (SIX) – Reports Before the Markets Open 10/26/16

Six Flags Entertainment Corporation (SIX) is scheduled to report earnings before the markets open on Wednesday, 10/26/16.

Last quarter, the stock had the following price movement after reporting earnings:


Jul 27, 2016

56.16
58.30
56.00
56.69
3,912,700
56.02

Jul 26, 2016

59.22
60.00
58.85
59.46
1,378,000
58.75

This is one of those trades where the price to place it alone makes it worth trading. Last quarter, (SIX) did not make a significant move at all, and while I am expecting the stock to move more this quarter, the break-even points on the P/L chart using a Neutral Calendar Spread strategy are very wide. The only minor issue regarding this trade is the lack of weekly options. other than that, this is an excellent set-up here. I am still giving this trade a 10/10 if you are able to get the order filled at my recommended price. It will retain value regardless how it moves tomorrow once the markets open.

Here is how the trade is placed:

Entered Trade

Sell -50 SIX Nov16 50 Call

Buy 50 SIX Dec16 50 Call

Requirements

Cost/Proceeds
$1,000.00
Option Requirement
$0.00
Total Requirements
$1,000.00
Estimated Commission
$125.00

NBBO
0.00 – 0.30. Try to pay 0.20 or less for this trade. At a maximum, pay up to 0.22. See the attachment for the profit/loss chart.

I will post the price to close this trade out tomorrow morning, right before the markets open

six-ncs-102516

Update 1: 10/26/16, 9:25 am EST. – Pre-market, the stock is down $1.25/share. I am placing the price to close this trade out (net credit) at $0.50. I will update any changes here.

Update 2: 10/26/16. 10:10 am EST. This trade is in a good spot. Just need time-decay to kick in. Be patient with the trade. STC still at 0.50.

Update 3: STC *(net credit) now at 0.40

Tagged , , , , , , , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

  • Subscribe to Blog via Email

    Enter your email address to subscribe to this blog and receive notifications of new posts by email.

    Join 114 other subscribers

  • Recommended Books on Amazon.com