Earnings Beat – ISRG Trade
Good Day Insiders,
Intuitive Surgical Inc is reporting earnings post the close today and we are looking to take advantage of the inflated volatility. The expected move on this high flyer is +/-$22.50. At the time of this update, ISRG is trading at 534. This takes us down to about 510 and up to about 555 and potential price targets. Over the past two earnings trades and given the amount of volatility this market has seen leading to the end of 2018, I to be completely honest I am tempted to place our profit potential right here. If we did this, we would have exposure on the downside and upside and only profit if the stock stayed close to where it is now and seeing as how I am in no way able to tell the future, let’s cover our bases on this stock potentially moving.
We will place our 3 trades, the selling of put spreads, the buying of an unbalanced condor and the buying of a call spread.
Risk & Reward
Using $5,800 in margin we will look to capitalize on movement. Our exposure on the downside hits at 487. In the event, we do not get movement we are looking at $800 of risk. Remember that these trades are speculation, so there is no need to bet the farm! Between 2-5% of the portfolio.