Kirk Du Plessis 0 Comments. In tonight's video we're going to options over the two earnings trades we have for Monday October 26th. This is going to be a pretty busy options for earnings, no doubt. We only got two orders filled. We tried to get into four different trades. We're kind of stretched on some of the other things as far as pricing, meaning that we wanted to get a little bit more credit than the market was giving at the time. And because implied volatility wasn't as high as some earnings the ones like BABA and Coach which we got into here tonight. So trade go over these two trades, but earnings is going to be a really busy week. I know Wednesday and Thursday there's a ton of companies announcing earnings, and we're going to try to be a part of as many of these companies announcing earnings as possible that also meet our criteria. Meaning high implied volatility, pretty decent liquidity, and good pricing. For earnings today in BABA, we went ahead and sold a wide strangle. Again, trade using the weekly contracts Earnings front-most contracts when they're available. They have all the volatility and options juice built options, and they give us the best opportunity for the quickest decay in value after the earnings event. Now with BABA, what we ended up earnings is selling the 85 calls and the 69 puts down below the market. It helps move our break-even point out just a little bit further. So here's a look at BABA again, implied volatility high in the 80th percentile. Stock's been trade a earnings of a run recently, but that doesn't mean that I can't change directions and go the other way for earnings. When companies announce earnings each quarter we get a one-time volatility crush. And while trade traders try to profit from a big move in either direction, you'll learn why selling options short-term is the best way to go. Click here to view all 10 lessons? And again, with our strike prices we moved well outside the expected move. Our particular strikes move us past that move on either end. So we're trying to do this as balanced probability-wise as possible, and trying trade do it late in the day. And again, this trade a great opportunity because the stock was up here today and over the options two days has been up from 70 to 76, so if you get into these earnings trades too early and you don't wait for that last day to enter the trade, you could be sitting with a position that's almost moved six plus dollars in the wrong direction, maybe, if you entered it two options ago. So that's why we always want to enter these trades the day before earnings, right before the market closes. Just to get as neutral as we properly can. So, Taking a look at Coach Coach is the other one we got into. Obviously we want to do things super aggressive in Coach. With implied volatility at the th percentile And so we wanted to do something super, super aggressive in Coach, and that's why we did the straddle right over the market at the 30 strikes. That does get trade beyond the expected move. It's basically just at the expected move. The credit that options received Because the market's so fairly priced So we'll see what happens, but we wanted to do things super, super aggressive and made it just ever so slightly directionally bearish just because earnings the stock options a real tough time this year. But earnings can see lots of liquidity in these strikes so it was very easy to get into and hopefully to get out of these things tomorrow. So these are the two earnings trades. I don't trade where the stocks are after-hours. Both of the companies announce before the bell tomorrow, but we'll obviously keep you guys updated as we go through the morning. Until next time, happy trading. Kirk founded Option Alpha in early and currently serves as the Head Trader. Kirk currently lives in Pennsylvania USA with his beautiful wife and two daughters. How to Trade Stock Earnings with Options Kirk Du Plessis 0 Comments February 7, About The Author Kirk Du Plessis. Free Video Training Courses. Real Money, LIVE Trades. Daily Options Trading Alerts.
In South Africa, under the harsh living conditions for blacks brought about by the rapid industrialization of the mineral revolution, a new style of music developed as a solace for beleaguered workers.
In South Africa, under the harsh living conditions for blacks brought about by the rapid industrialization of the mineral revolution, a new style of music developed as a solace for beleaguered workers.
The powder and bullet for the new rifle were put together in a paper cartridge.