Yesterday we decided to fade the implied move in Adobe (ADBE) heading into their fiscal Q2 print with the following trade:
Trade: ADBE ($80.35) Sell the June 77.50/75 – 82.50/85 Iron Condor at 1.25
Sell to Open the June 77.50 / 75 put spread at .55
-Sell to open 1 June 77.50 put at 1.06
-Buy to open 1 June 75 put for .51
Sell to Open the June 82.50 / 85 call spread at .70
-Sell to open 1 June 82.50 call at 1.28
-Buy to open 1 June 85 call for .58
With results out of the way, the stock is down this morning 1.6%, far less than the implied move of 5%, and the the above trade is a quick winner. With almost 3 trading days to expiration, and the Fed announcement coming this afternoon it makes sense to take the trade off for a profit and move on:
Action: ADBE ($78.65) Buy to Close the June 77.50/75 – 82.50/85 Iron Condor for .25 for a $1 profit
Buy to Close the June 77.50 / 75 put spread for .22
-Buy to close 1 June 77.50 put for .28
-Sell to close 1 June 75 put at .06
Buy to Close the June 82.50 / 85 call spread for .03
-Buy to close 1 June 82.50 call for .05
-Sell to close 1 June 85 call at .02