11/8 Weekly Earnings Calendar Spreads (SYY, DHI, CAH, DIS)

Updated

Description:
Some potentially attractive Calendar Spreads I'm looking at putting on based off of the close on Friday.
CAH looking especially attractive.

Announced Earnings Dates

SYY 11/9
DHI 11/9
CAH 11/9
DIS 11/10

Long Call Calendar Spread
Levels, break-evens, and R/R will be updated when positions are filled.
The boxes on the charts right now are the profit ranges at expiration for ATM Calls
You could always spread the puts instead of the calls if you want a slight bearish bias on the stock post earnings.

Criteria to enter:

At least 4:1 R/R, measured from max profit to debit required to enter.
Break-evens outside the expected move

Intend to close directly following earnings.
*Stops based off underlying stock price, not mark to market loss

Only invest what you are willing to lose
Break-evens and R/R vary on fill

Note

SYY Pre-Market on the 9th
DHI Pre-Market on the 9th
CAH Pre-Market on the 9th
DIS After Hours on the 10th

Trade active

11/8 Fills
SYY @ .28 - R/R: 4.3
Break-evens

85.13, +5.5%
77.18, -4.4%

DHI @ .37 - R/R: 4.5Break-evens
99.96, +7.9%
86.73, -6.4%

CAH @ .25 - R/R: 6.8Break-evens
56.52, +13%
44.48, -11%
You may be able to fill these for <.2 now

*Dis entry is on Wednesday
*Most of these break-evens represent levels that are a lot tighter than the ones shown on the chart, due to the discrepancy between the closing prices on Friday and their mark today

Trade active

All of the above mentioned fills were completed by utilizing the nearest the money strikes at the time of opening.

Trade active

Positions are in for tomorrow, expected earnings times are:
SYY at 10am
DHI at 8:30am
CAH at 8:30am

Trade closed: target reached

Lets see the results so far:
SYY
closed out @ .25, -10%

DHI
closed out @ .38, +2.7%

CAH
closed out @ .4, +60%

If you only put positions on in these tickers, you would post a decent profit, but
these coupled with my other Calendars on RBLX and PYPL have me down 13.45% on this strategy so far this week. DIS results to follow, and I will look to fill these today.
This stresses the importance of risk management not only per trade but also per strategy. My total account allocation for Calendars this week is capped at 12%.
This puts my total account loss on this strategy this week @ -1.2%.
I use a handy spreadsheet I built to give me % allocation to each position based off R/R and total allocation devoted to the strategy. If you'd like to see this, just let me know and I'll dm you.

Trade active

Opened DIS Calendars @ .63
R/R ~5.5:1
Break-evens

Trade active

DIS around 167 AH right now. If it remains here or higher, position will be a win. Also watching major support break for short position.

Trade closed manually

DIS Calendar Spread was a bust, down ~8% at time of closing. Filled @ .23, -63%.
I believe broader market conditions are not conducive to putting on calendar spreads due to the expectations required to maintain current valuations.
It is all either too much or too little.
50% win rate, -1.78% profit based off R/R-based allocation for full idea.

BarnardR

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