Bought the JCP straddle yesterday. Earnings out tomorrow. Let's see how it goes. I will sell it today. I must mention that I bought the straddle without even looking at volatility. All I know is JCP was a far less volatile stock last earnings. This could go up or down 20% easily.
this is exactly what i've been saying... your bettr off profiling momentum and pretty girl stocks and buying deep otm strangles or puts.. mostly puts.. premium buyers survive.. especially earnings..
hey Strangler... look at how your article is double posted... http://www.theoptionsinsider.com/education/?id=10490
What you can also try to do is buy a butterfly on stocks that moved strongly last earnings announcement..i tried to do that with gmcr..however stock went up 30%. My loss wasnt much though..almost breakeven..imagine if the stock doesnt move .easy double if you ask me... grpn may be a stock for this strategy...straddle implies a move of almost 25%. Then again it might be the next znga.
GRPN earnings out on monday after hours. I was thinking of buying a straddle on it, but I changed my mind.
I'd rather strangle then straddle ... big blowouts aren't rare... but people might over price because of priceline
Straddled ATM flies. NTES at 54+. Go long the 55/60/65 call fly and the 45/50/55 put fly in Sep for roughly $1 each. Not a reco and there are some problems inherent. Max $5 gain on $2 debit. Can invert delta or trade through the wing in the direction of the move. Pay 3.00 all-in for the 7.50 wide flies. Lower prob of inverting on the direction of the move and the same R/R potential.