The Monday after options expiration is always a delight for me, as all the short option positions that I've held through any sort of volatility just disappear off my open position sheet and I'm left with a nice chunk of credit and freed up margin.
ISRG is one of those plays.
Back on October 20th when ISRG was reporting earnings, we had seen a strong bidup in implied volatility compared to the range we've been building. So I structured a trade for my subscribers in which we were making a mildly bullish bet but mostly selling volatility. You can see the full post here.
Here was the original risk profile:
Given the position sizing suggested for a 40K portfolio, we will be taking in a full credit of $760, with a total return on risk of 61%.
If you like trades like this and want solid, profitable option setups that help to manage risk, consider joining up with the rest of my subscribers!