Hello Investors,
Today we reviewed a few positions with a special focus on Snowflake (SNOW) as it is due to report earnings on Wednesday. We placed an order to buy an OTM very short-term put butterfly spread with this Fridays expiration. This is a lower probability of success trade but a bigger payoff if the stock tumbles. It is a pending order and we will see if we can get filled before Wednesdays earnings results are released.
Buy to open: SNOW Dec 1st (weekly) 165.00 strike put (ratio of 1)
Sell to open: SNOW Dec 1st (weekly) 150.00 strike put (ratio of 2)
Buy to open: SNOW Dec 1st (weekly) 135.00 strike put (ratio of 1)
Debit: 2.85 – this order is still pending
Max risk = 2.85 or $285.00 per spread
Max reward = 12.15 or $1,215.00 per spread
Have a great week!