First trading day after President Trump’s inauguration. Market is pretty stable but the recent rally pushed individual stocks’ vol lower, so today is a good opportunity to open a few double eagle trades.
Main takeaway from these trades: Don’t hesitate to take profit… especially with straddles.
Trade 1. NVDA Double Eagle
Exit
Total PNL (before transaction cost): +32.47%
Update 2/24: Closed the remaining half at $5.41.
Update 2/13: Closed half of the positions at $5.85.
Enter
- Earnings release date: 2/26
- Trade: G5.21/G5.28 130/150 STG SWAP
- ToT stats
- Vol: G5.21 @ 39%, G5.28 @ 49%
- Underlying: $138.95
- Premium: $4.25
- DPR: 3.06%
- SPR: 14.39%
- Expected IV build: 24%
Trade 2. LOW Double Eagle
Exit
Total PNL (before transaction cost): -42.59%
Update 2/21: Closed the entire position at $2.13.
Enter
- Earnings release date: 2/26
- Trade: G5.21/G5.28 255/275 STG SWAP
- ToT stats
- Vol: G5.21 @ 21%, G5.28 @ 23.5%
- Underlying: $265.67
- Premium: $3.71
- DPR: 1.4%
- SPR: 7.53%
- Expected IV build: 15%
Trade 3. HD Double Eagle
Exit
Total PNL (before transaction cost): +0.54%
Update 2/20: Since Trump’s tariff announcement, HD and LOW have been selling off… Closed the other half of the positions at $4.45.
Update 2/13: Closed half of the positions at $6.81.
Enter
- Earnings release date: 2/25
- Trade: G5.21/G5.28 405/435 STG SWAP
- ToT stats
- Vol: G5.21 @ 19%, G5.28 @ 22.5%
- Underlying: $418.26
- Premium: $5.60
- DPR: 1.34%
- SPR: 7.17%
- Expected IV build: 10%
Trade 4. EOG Straddle
Exit
Total PNL (before transaction cost): -23.35%
Update 2/26: Closed the entire position at $6.40.
Enter
- Earnings release date: 2/28
- Trade: G5.28 135 STD
- ToT stats
- Vol: G5.28 @ 23.5%
- Underlying: $135.39
- Premium: $8.35
- Expected IV build: 8%