Earnings Announcements: An Options Trading Checklist

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Tastytrade’s Tom Sosnoff and Tony Battista go through and explain what to expect with option prices around earnings, how to calculate the expected move for earnings, how we choose an underlying and where to locate earnings in dough’s visual trading platform. The traders also demonstrate the effect of past movements on upcoming earnings, how to pick appropriate strategies and when to exit earnings trades.

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Comments

James Reno says:

What is the point of rolling out to the next month after a binary event?  As you close the front month, trade over.  Selling the next month is a new trade and should be evaluated as such…..thoughts?

ModerateFutures says:

tastytrade came out with a study yesterday that concluded there was no edge in selling premium the day before and closing the day after earnings. It'd be great to see the results if the earnings play was held for 45 days would the results be the same?

Mino Demovic says:

Super video. Thank you. It is so that earnings strangle it makes no sense to edit the case to the earnings loss. It is better to close with the loss and go to the next trade? Earnings Strangle no editing options such as 45D strangle. Is that so? Or is it better earnings strangle roll to the next expiration if it is just after the earnings loss?
Thank you.

ColGadarby says:

Can't understand why you would sell straddles and strangles on a large overnight binary move. Seems to make no sense. I know that with IV being high the premium will be good but it's is highly likely to be assigned.

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