Trading Options around Earnings

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An example of trading options around earnings announcements using Apple’s 3rd Quarter 2011 announcement.

Comments

Manuel Rios says:

Great, very clear, thank you

Nab khan says:

Very clear. Thank you so much for all your effort. Please can you put up more videos on option strategies when you get a chance? I love your so clear style of teaching. Keep it up!

dazedbitai says:

Very informative. Glad I came across this video. Thanks

Kevin Bracker says:

There is no way to know with certainty as the implied volatility is determined in the markets and we can't know how much this will fall after the earnings announcement. One could try to estimate how much it would decline from looking at what happened following previous announcements, but it would still only be an approx. The best approach would be to estimate implied volatility after the announcement and then plug that into a BS OPM spreadsheet. Then you could trial-and-error the stock price

superduperboyx says:

Great video, very clear. Thanks. But just wondering, since for straddles, we look for big movements after the earnings, how do we know how much it SHOULD move in order to know we are in the greens before we get rid of them? If say from your example, AAPL did move only that much higher, $10, I want to know how much it should move above or below the current price in order to know we're going to profit from the trade.

MrPowerSearching says:

Awesome video. The straddle strategy is quite clear to me. Thank you so much. Good job.

sampath kumar says:

neat explanation .good job

houdapurple says:

so clear , thank you for your efforts

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