Trading Call/Put Options Around Earnings Is Exhausting

Discussion in 'Options' started by ByLoSellHi, Apr 26, 2007.

  1. Hey , Don. Yes , volatility , if IV brakes pre-report levels . This will happen often because all speculators ( that bought yesterday) are trying to dump vols at the open at any cost. If you can get it at the bottom , you will have :
    1. Possible bounce in IV
    2. Seven hours of unusual high stock volume action( vs any other day)
    3. Possible press conf at noon ( a huge plus) that can swing price

    All this spells out for potential GAMMA SCALPING PARADISE.
    Not so simple as it sounds , of course , but worked for me most of the times.
     
    #21     May 1, 2007
  2. Thanks IV, you da man.

    Don
     
    #22     May 1, 2007
  3. RL8093

    RL8093

    ByLo,
    Just curious if the direction / content of the thread is what you intended? It seems to be focusing more on playing the IV pre-E. I got the impression, you were asking about the plays post-E....
     
    #23     May 6, 2007
  4. spindr0

    spindr0

    Regardless of what approach you have with earnings plays, you're right - it is extraordinarily time consuming. I have reduced the time spent by screens such as minimum stock price, minimum IV, etc. I also avoid most non-Naz stocks because supporting positions in the pre/post market is tough with the 3 letter critters. And working with someone else with similar interests cuts it even more. But it's still a massive job.

    I guess that I trade the vols via various spreads (not quite sure what the correct terminology is). Lotsa small losers but an occasional big one like AMZN, FFIV, BIDU. Not a get rich scheme but if it beats MM rates each year, I'm happy.

    As for your question of whether it's a good strategy, it all depends on if it works for you. Everyone has different talents, tolerances, etc. so just try to find something that fits your comfort zone.
     
    #24     May 6, 2007