I’d be very interested in this as well. Does the profit potential from a move actually end up outweighing the premium from buying calls and puts so close to earnings when their cost would be elevated?
With a straddle, you are protected in a move in either direction, with a strangle you would need to be leaning more that it will move in a certain direction. A cost analysis needs to be done to see if the risk-reward works, most of the time it doesn't make financial sense to use either strategy but when it does it's a good play to have in your arsenal.
Great stuff Ed. OPtions are Greek to me!!. IN all seriousness, I can trade equities but haven't the slightest idea how to trade options and have been thrilled w/ all you've provide. THANK YOU! Michael
There’s a slew of earnings this week. I wonder if there’s an opportunity within one of those? I already have positions in many of the names and I look forward to learning these “new to me’ strategies to apply in the near future. Thanks
Can you go over some potential straddles/strangles as we go into earnings with the higher volatility stocks
I think thats a good idea...when I come across something optimal I'll put it out there.
I’d be very interested in this as well. Does the profit potential from a move actually end up outweighing the premium from buying calls and puts so close to earnings when their cost would be elevated?
With a straddle, you are protected in a move in either direction, with a strangle you would need to be leaning more that it will move in a certain direction. A cost analysis needs to be done to see if the risk-reward works, most of the time it doesn't make financial sense to use either strategy but when it does it's a good play to have in your arsenal.
Great stuff Ed. OPtions are Greek to me!!. IN all seriousness, I can trade equities but haven't the slightest idea how to trade options and have been thrilled w/ all you've provide. THANK YOU! Michael
There’s a slew of earnings this week. I wonder if there’s an opportunity within one of those? I already have positions in many of the names and I look forward to learning these “new to me’ strategies to apply in the near future. Thanks
👋 I’m interested!
I'll put something out when I get a good set up on a large cap that is approaching earnings