Maury felt pretty smug about taking the Admiral’s FB trade, however, he was not prepared for BIDU. The Admiral had his mojo working as he went stalking an uber Maury trade, and it ended up a doozie!
On 7/28, BIDU was scheduled to report earnings after the close.
The Admiral sent out a Bearish 3x9x6 AUG Put Vertical Ratio Spread: +160/-145/+140 strikes, paying $2.35 x 3
While EPS was slightly above expectations, BIDU opened down and the Admiral sent an order for a partial exit #732A: Sell 2 x160/Buy 6 x145/Sell 4x 140 puts, for a credit of $3.86 twice, leaving us a +1/-3/+2 Put Vertical Ratio and a credit of $.67
Not bad for overnight, eh Maury!
But wait, the Admiral had another trade up his sleeve.
Order #732B adjusting our remaining +1/-3/+2 Put V Ratio: Sell to close 2×140 Puts/ Buy to Close 3×145 Puts. The spread cost $1.20, leaving us with a debit of $.53. (Maury is now nervous; as he only likes to collect, not pay).
No worries, Maury, How about this?
The Admiral wasn’t done: Sell 2x 155 Puts/ Buy 1×150 Puts for a credit of $3.38.
We now have a $2.85 profit and +1/-2/+1 160/155/150 AUG Put Butterfly currently with a market value of $.96.
After all said and done, Maury was all smiles.