I decided to implement a strangle strategy instead of a straddle for my Alcoa(AA) trade. A strangle consists of buying a call and a put with the same expiration at different strike prices. I did this because I feel that AA is going to make a big move after earnings are announced, so I want to benefit from the swing in either direction and the volume on the Out of The Money(OTM) was way higher then the ATM strike.
This is a play on earnings, so I have no technical reason for this trade. FYI...AA earnings is the kickoff for earnings season, so I will be implementing a lot of strangles and straddles.
Below are current positions in the account
Account Balance: 2335.35
Account Balance: 2335.35
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