I shall analyze NVDA today as a potential earnings play.
I am, once again, attempting to exit INT, LMT and QCOM at their target prices.
The attempted exits work like this: The iron fly construction — essentially an iron condor without the plateau — has defined risk and reward, odds and price points that are calculable when I enter the position.
My exit guideline for the iron fly is 25% of the maximum potential profit. I put in orders to sell each day that a position’s paper profit is at 20% or greater of the defined maximum reward. Some days the price will hit the 25% target, triggering an exit, and sometimes not, allowing the order to expire unfilled at the closing bell.
It’s a method that allows me to implement my exit strategy without having to watch the charts continually, an activity that I loathe as a waste of mindspace.
By Tim Bovee, Portland, Oregon, Feb. 9, 2017