Trading Options around Earnings



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

Comments

  1. This video is clear and concise in its explanation, no rushing through. Thank you.
  2. Loved it
  3. Thanks for making this option strategy so clear and easy to understand. In the video, in the case where 600 was loss, I wonder if an order to automatically close out the position, at a certain level of the stock price or some other measure, would have cut loses?
  4. Your explanation has been the best I have ever listened to about this topic. Thank you.
  5. what about weekly earnings strangles with stock options could that work there is a good company having an earnings every week
  6. Great video, very useful. thank you for explaining that made sense.
  7. Thanks very much for making this video, your a good teacher. I finally understand this stuff
  8. Just before earnings IV is often high. I do not like selling naked options so I usually sell iron condors. I chose calls and puts with deltas of about +/- .20. Sometimes the stock breaks through one side or the other and I have to do a repair of that side. IV when very high usually referts to the mean. The platforms of some brokers will give thier clients the history of IV(30 or 60) for the past year. I have seen cases of stocks that seem always to rise just before earnings and sure enough those options are expensive. Others seem indifferent to earnings' announcements and I will not so this strategy. I exit the condor when I can buy it back at 25 cents on the dollar.

    But sometimes I find IV low and all the options are cheap. Therefore I do the strategy in this video. When IV is low, it works well. The options are cheap and the profts can be quite large.
  9. Excellent video, it is totally true - I tested this strategy several times in real life and always end up with losses. Thank you so much for the great videos!
  10. Great, very clear, thank you
  11. 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!
  12. Very informative. Glad I came across this video. Thanks
  13. 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
  14. Awesome video. The straddle strategy is quite clear to me. Thank you so much. Good job.
  15. neat explanation .good job
  16. so clear , thank you for your efforts


Additional Information:

Visibility: 9020

Duration: 17m 32s

Rating: 87