CELG Analysis

Celgene Corp (CELG)

Exit 4/3/2019: I exited CELG on May 3 at 50% of maximum potential profit, for a $0.59 debit.

Shares rose by 4.6% over eight days, or a 210% annual rate. The options position produced a 101.7% yield for a +4,640% annual rate

I entered a short iron condor spread on CELG on March 26, using options that trade for the last time 52 days hence, on May 17. The premium is a $1.19 credit and the stock at the time of entry was priced at $89.34

The implied volatility rank (IVR) stands at 62%.

Premium: $1.19 Expire OTM
CELG-iron condor Strike Odds Delta
Long 105.00 97.0% 4
Break-even 98.69 89.5% 12
Short 97.50 82.0% 20
Short 75.00 81.0% 15
Break-even 71.19 85.0% 11.5
Long 70.00 89.0% 8

The premium is 19% of the width of the position’s wings.

The risk/reward ratio is 4.3:1.

By Tim Bovee, Portland, Oregon, April 1, 2019


Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decisions for his or her own account, and take responsibility for the consequences.

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