META report

Discussion in 'Options' started by IV_Trader, Feb 1, 2024.

  1. stunning drop in vols in the last 2 days. Some sold at 6.1% ATM straddles on stock that
    moved 24% few qtrs ago.

    And guess what...up 12% in after hours.
     
    jys78 and nbbo like this.
  2. S2007S

    S2007S

    People didn't want fb at 99 bucks but now they are tripping over each other to buy it at 450.
     
    jys78 and EdgeHunter like this.
  3. Matt_ORATS

    Matt_ORATS Sponsor

    Yes, here's a graph of the stock and implied earnings move for the last four days. The high was an implied move of 7% now it's down to 6%.
    [​IMG]
    https://gyazo.com/acea3afc1648ce037044dbceb8662f10

    Here's a 12 quarter history of earnings. Average move 11.4%. When those green and red dots are outside the shaded implied moves the straddles were profitable, about 6/12 times.

    [​IMG]
    https://gyazo.com/92c74153a5db7457c4b9636531ffcac2

    Time & Sales large trades: I see more buyers than sellers today of premium:
    [​IMG]
    https://gyazo.com/f09f0770e291d615e6ebf76a752527d4
     
    jys78 likes this.
  4. I closed my position at 7.5% Monday or last Friday.

    Was tempting to keep it and wait for 8.5-9.0 and I am glad I didn't!!

    I think at 9% the R/R would be solid...but NEVER at 6%!
     
  5. jys78

    jys78

    Up 22% now. Call sellers in shock.
     
  6. more like on suicide watch
     
    jys78 likes this.
  7. newwurldmn

    newwurldmn

    I don’t follow. Were you short or long the earnings vols
     
  8. I see how this can be confusing, my bad. I was long (as always) pre report vola rump and was planning to exist before the report (as I almost always do). Had a good profit and existed few days before report.

    I was lucky not to hold it in the last 2 days before the report when vols crashed.

    Now ideally, I should hold it into the report :), but it's simple not my game.
     
    newwurldmn likes this.
  9. Movers keep on moving...

    SNAP (no position): down 30% after hours.
    FTNT (no position): up 15%

    Let's see what RBLX (closed with profit on vols rump and scalping) does tomorrow morning.
     
  10. upload_2024-2-8_13-11-4.png
     
    #10     Feb 8, 2024
    cesfx likes this.