So, MCK had a pretty volatile day. It was up pretty big in the AM which allowed me an excellent entry point. Originally, last night when I found this trade the credit for the spread was $2.37. With the AM spike I was able to get $2.70 per 3/2 spread. See chart below: (Click any picture to enlarge)
Around 14:00 EST I was up $538 and put in an order to take off 2 spreads (6/4 contracts) but it didn’t fill. Then MCK went up and is still up as I write (15:55) and you can see in the above chart. Looks like I’m holding the whole thing into tomorrow AM earnings.
As you can see from the Analyze tab below I’m looking for the underlying to go down but staying the same or a very small increase in price will be good too. A large rally will produce losses but that should also converge IV and I’ll lose less.
I’ll keep you posted.