ASTR Risk Reversal – Closing before Earnings as Risk Mitigation

close astr
11/9 – ASTR is over the strike price, and we decided to take a small loss of $38 and buy back our $10 strike put for $142 before earnings this week.

10/29 – rolled from November to December for a .30 credit

9/30/21 – Rolled out the 10 dollar strike from October to November 19th for a $50 credit. Keeping the dream alive and giving myself more time to be right!
– Sold 1 ASTR 11/19/21 Put 10.00 @ 2.23
– Bought 1 ASTR 10/15/21 Put 10.00 @ 1.73

9/16/21 – After a couple says waiting to be filled, finally was able to roll my $10 strike short put in September to October 15th for $75 credit. This puts us ahead in the trade by $24 overall and buys us more time for ASTR to exceed the 10$ strike price.

9/13/21 – With ASTR below the $10 strike and < 21 days until expiration, we are looking to either 1) roll the put for a credit, or 2) get assigned and sell calls against it, which is known as “wheeling”. I currently have an order waiting to fill to roll from Sept 17th, to October 15th for a $75 credit. The call option we purchased will most likely expire for a loss.

8/30/21 – On 8/10 we sold the Sept 17th 10 strike put, and bought the Sept 17th 12.50 strike call for a $51 debit. We were hoping that ASTR’s first rocket launch in the coming days would help the stock rocket into the stratosphere, however there was a malfunction on Saturday. With the stock trading at 10.62 after hours on Friday, we were not in any danger of having to purchase 100 shares, but since closing below $10.00 on Monday, we may want to consider closing the trade for a loss, or holding and taking on the risk of potential ownership if the stock stabilizes.

8/23/21 – ASTR is heading higher. We’re up 30$ on the 10 strike put, but down -86 on the 12.5 call… just need more upward momentum and time.

On 8/16, seems $ASTR is attempting to get back to it’s HMA. We continue to stay in the trade and monitor.

On 8/10 or 8/11, consider $ASTR – Astra Space Inc Class A has earnings on 8/12. Money Vikings have a bullish assumption in this one. We’re Selling a put to finance the call. Earnings could be the catalyst we need to push it higher. If we’re correct and the price goes up, we capture the upside from our call. If we’re wrong, we’re obligated to buy 100 shares of the stock at $10.00/share. If you don’t want to buy, you could alternative roll out another month to October.

Bob’s take – Bob is Bullish ASTR and there are earnings on the 12th of August after market close. If it goes above the red line, it could continue to break out even more.
  • Buy a 9/17 12.50 call for around 1.60 – 1.70 (debit)
  • Sell a 9/17 10.00 put for around 1.10 – 1.20 (credit)

-Jerry & Bob

Pay a small debit to enter the trade (.51 at the time of this writing)

$ASTR profit and loss view

Leave a Comment