You know I had a feeling too.... damnit. I don't think it will be a big shift either, but we shall see. Either way the 3.8% ATM straddle is not worth holding for an expiry right before earnings expiry.
Thought I would bump this thread after 2 weeks of no posts, earnings Thursday Jan 30. How about going long the Jan31 weeklies on January 30? Calls? Puts?
This thread has sat dormant for a week, time to bring it back to life. GOOG earnings this Thursday Jan 30, what to do? The Jan31 weeklies will provide the most bang for the buck. Maybe buy some dirt cheap DOTM calls in the $5.00 range?
if I short call and put with strike at 1110, and the market no move, that means my money doubled? any expert opinion on this trade
I didn't enter this trade but it would have been profitable. GOOG was trading at about 1,135.00 just before earnings. Buy 1 contract GOOG Jan31 1150 Call at $27.30 Sell 2 contracts GOOG Jan31 1190 Calls at $9.80 ($19.60) Buy 1 contract GOOG Jan31 1230 Call at $4.90 Debit $12.80 GOOG is now at $1180.60 plus 3.95% after earnings and the position could have been closed for $27.20. Sell to close 1 contract GOOG Jan31 1150 Call at $29.00 Buy to close 2 contracts GOOG Jan31 1190 Calls at $1.00 ($2.00) Sell to close 1 contract GOOG Jan31 1230 Call at $0.20 Credit $27.20