This thread is for NON DIRECTIONAL short term trades around earnings release dates , neutral long/short straddles/strangles , Calendars and Reverse Calendars. Examples : Short DNA (1/10 , ac) strangle Long CAI (1/18,na) combo Long HTCH (1/18 , ac) combo I will post the real # later , if conditions are still favorable
hi - great thread, i have been interested in the subject for a while but haven't gotten around to looking into this in any detail... - if i may ask a couple of questions - does implied volatility tend to rise in the period approaching earnings, and if yes, you believe that it still ends up underpriced? - also, what is your rationale for shorting a strangle vs buying a straddle, is this driven by the options prices you can execute at or do you short a strangle if you believe the impact of earnings will be limited, but still significant enough for you to make a profit? thanks in advance and all the best.
thanks , fader short combo > when inflated IV and limited move after earnings long combo > undervalue IV and/or potential big (up or down) move after report. A lot of weight > calendar report date position to option's expiration.
sold puts for 1.05 , sold calls for 80 c , average combo profit=52 cents. This was the faster IV spike/trade ever , AVCT posted report date yesterday after close and so many people lined up to buy low volx , unreal
Both of these went up? So you sold in anticipation of them announcing an earnings' date and b/c IV was quiet? How did you know they would schedule earnings prior to expiry? Nice Trade IMO, sd
yes , both are up big (without any change iin stock's price) Actually , its much higher now (1.10 for a call and 1.00 for a put) , I close to early , but one never knows...