How To Calculate The Expected Move Of A Stock

http://optionalpha.com - Calculating the expected move is a great tool to use when determining how far OTM to sell options for an earnings set-up. And this quick tutorial will show you how to use the the weekly ATM straddle options for pricing to help figure out how far the stock is likely to move following the company's earnings announcement. Again this does not guarantee that we are able to correctly predict the possible range but we can get a very high confidence range based on how we calculate the expected move. This should enable us to consistently make 70% probability of success trades. ================== Listen to our #1 rated investing podcast on iTunes: http://optionalpha.com/podcast ================== Download a free copy of the "The Ultimate Options Strategy Guide": http://optionalpha.com/ebook ================== Still working a day job? Then our "Take 5" segment is for you. 5 mins videos each day on 1 thing you can apply trading options: http://www.youtube.com/playlist?list=PLhKnvfWKsu40z0EnsX0TNqCgUzb8tmM04 ================== Start our 4-part video course (HINT: these videos are NOT posted anywhere else online): http://optionalpha.com/free-options-trading-course ================== Just getting started or new to options trading? Here's a quick resource page we made that you'll love: http://optionalpha.com/start-here ================== Register for one of our 5-star reviewed webinars: http://optionalpha.com/webinars ================== - Kirk & The Option Alpha Team

Comments

1. Is MMM the expect 1 - Stdev move for one day or until the option expires @optionalpha thanks.