Trading Earnings | Implied Volatility Differentials & Using Them To Trade!

https://www.tastytrade.com/tt/ Tom Sosnoff and Tony Battista are analyzing earnings cycles and comparing the front month and back month vol differentials to determine if there is any edge. The team first tackles how to calculate the IV differential, and, after testing their theory on several larger stocks during earnings, tastytrade's results yield some powerful takeaways! ======== tastytrade.com ======== Finally a financial network for traders, built by traders. Hosted by Tom Sosnoff and Tony Battista tastytrade is a real financial network with 8 hours of live programming five days a week during market hours. Tune in and learn how to trade options successfully and make the most of your investments! http://goo.gl/EaF69C Subscribe to our YouTube channel: http://goo.gl/Szl24S Watch tastytrade LIVE daily Monday-Friday 7am-3pmCT: http://goo.gl/EaF69C Download our mobile app, Bob the Trader: http://goo.gl/zgIyco Follow tastytrade on Twitter: https://twitter.com/tastytrade Become a fan of tastytrade on Facebook: https://www.facebook.com/tastytrade Follow tastytrade on LinkedIn: http://www.linkedin.com/company/tastytrade Follow tastytrade on Instagram: http://instagram.com/tastytrade Follow tastytrade on Pinterest: http://www.pinterest.com/tastytrade/

Comments

1. Imran: Yes, we always use calendar spreads for earnings trading. However, there are two things you need to understand before entering the trade: first, calendar spread is neutral strategy, if underlying moves too far out, it still could lose money; second, make sure the IV differentials between front and back month is rich enough.
2. What do you guys think of using this in a calendar spread?