In the lively chat rooms of Hamzei Analytics, Maury tales are abound. Saying Maury (a fictitious character) is frugal, is an understatement. His motto is “What’s for free, is for me”. At the very least, he hates wholesale prices and want to buy below cost, thus negotiates for the best bargain.
He has set the standard for getting the most out of our options trades. We have come to appreciate the “Maury” trades in the HFT Options Trading Chatroom. Old timers anticipate Maury trades with glee, and new comers learn to jump in quickly when they are announced. That said, Maury has never met an options trader quite like Mark Esposito, aka the “Admiral”, until the current earnings season.
Admiral came in to lead the HFT Options Chatroom with some nice back spreads and great verticals. Then came the peak of earnings, options got expensive and Maury was sulking.
It was time for Admiral to put his skills to work.
On 7/27, the day Facebook earnings announcement was scheduled after the bell, Admiral sent out a Bullish 3x5x1 Vertical Ratio Spread: +124/ -129 /+ 133 with a $3.30 cost limit.
On July 28, FB opened at +3 sigma, 127.52, and then went up to 128.33.
Notice we exited 10 minutes after the cash open.
We had a buy of $3.25 and sale of $5.85 a 78% ROI, all in less than one day.
Maury said, “I like the Admiral”.