The secret to buying pre earnings straddles

Discussion in 'Options' started by TheBigShort, Aug 9, 2018.

  1. This is way too early for few reasons:

    1. IV increase rarely starts before 20-30 days before earnings.
    2. The negative theta will start to hurt the trade right away.
    3. If you go that far (~3 months), the effect of positive gamma will be pretty small.
    4. For most stocks earnings date is not confirmed that early - usually it is few weeks in advance.
     
    #91     Aug 11, 2018
    options_fanatic and vanzandt like this.
  2. destriero

    destriero

    Worst advice ever.
     
    #92     Aug 11, 2018
    billb2112 and TheBigShort like this.
  3. Quiet, the adults are talking....
     
    #93     Aug 11, 2018
    destriero and EvanDM like this.
  4. SmallFry

    SmallFry

    Where is this? I did not see any new press releases.
     
    #94     Aug 11, 2018
  5. I took this to be sarcastic humor and was shocked that everyone else believes you're serious - are they correct?
     
    #95     Aug 11, 2018
  6. EvanDM

    EvanDM

    Bloomberg.com that might not be a confirmed date.
     
    #96     Aug 12, 2018
  7. TheBigShort

    TheBigShort

    El it looks like our strat would have worked. Sell the straddle on M close first thing in the morning and then open a new long straddle to take the intraday move. I mean everyones hindsight book is up 1000% but I think we broke it down pretty good.
     
    #97     Aug 15, 2018
    nbbo and billb2112 like this.
  8. M straddle implied 9.3% move as of yesterday close. It is now down 14%. How selling a straddle was a good move?
     
    #98     Aug 15, 2018
  9. TheBigShort

    TheBigShort

    Are you having trouble reading Kim?
     
    #99     Aug 15, 2018
    SmallFry, destriero and El OchoCinco like this.
  10. destriero

    destriero


    Do you have access to r/t quotes? The shares were above $38 during the first 30 minutes of trading.

    TBS nailed it. Pre-report straddle was down in price and the post-report straddle is up. Other than precognition--he couldn't have predicted the move any better.

    Keep clowning.
     
    #100     Aug 15, 2018
    SmallFry likes this.