Just a quick update on CRWD. If you got into last week, in my opinion, it should be closed today. We recommended a 120/130 Diagonal Call Spread last Monday and the trade has worked out pretty well in our favor.
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The problem is CRWD has earnings today after the close and I personally don’t hold positions through earnings announcements. The Implied Volatility is showing a potential swing of +/- 16.25 for the MAR17 contract, which would knock us right out of the trade if it moves against us. (If you hold through the announcement and it jumps in our favor, you make another 600% return on the investment.)
So, choose your poison. I’ve seen it move too much against a position during earnings than for it - to me it’s too much like gambling.
As it stands, I got into the position at 5.00 and it looks like I can close it around 6.00 right now - a 1.00 profit, +20% on money invested. Not bad for less than one week. I am going to wait to close position towards the end of the market - maybe the last 15 minutes or so - in order to let that Theta decay a little bit more.
-Good Luck and Happy Trading!
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