Reddit options earnings. So I bought a few Facebook puts a few days ago.

Reddit options earnings Earnings Per Share: $6. Ahoy, traders. ) are not allowed unless they are new and market moving. Power E*Trade adds new earnings option play analysis feature. This is ideal, because the option will now most likely expire worthless, letting me keep the larger-than-normal premium. When earnings are actually announced, the premium collapses. To me, earnings are 50-50. if you are long a stock, you are at the mercy of the stock. In 2021, Intel generated $30. I pick stocks that have weekly options and have a history of increased IV in the week before Posted by u/fristene - 8 votes and 17 comments options in general have a risk premium for sellers there is an increased risk premium around earnings because of this jump risk (I sell earnings vol systematically more or less) You can start by comparing the implied move against average realized moves You can compare it to sector straddle performance Lots of ideas, most are “ok” ideas. 45 which is now $2. IV will usually ramp up as earnings approach, so if you buy the straddle too close to earnings, the options will be relatively expensive. Before you enter determine how much you are willing to lose. I'm sure all novice investors have gotten the idea to buy options before earnings in hopes of making outrageous money on big moves, only to be brought back down to earth by the IV crush concept. Anything that labels a short option trade as “income generation” is overly simplifying the risks and nuances of it. Since option premiums are based on IV among other things, I am wondering if shorting options at peak IV level right before earnings and then covering once IV crashes after earnings would be a profitable strategy The peak of earnings IV is typically the closing minutes leading into earnings. Here is what I find, is that in the current climate, straddles are a difficult win currently, especially around Earnings. The IV of its ATM options ending this week are about 31%. 10-day IV average chart, can see that it's starting to rise ahead of earnings. ET. Sort by: Best. All the volatility at T = 9 days is captured within the option at T = 1 day. Google "SPX Best Options Strategy" safer and delivering results! Get the Reddit app Scan this QR code to download the app now. Use our free tools to compare the current expected move to past earnings moves to help decide whether to trade or fade the move. Didn't do a good job explaining collars either. So the profit mountain you see before earnings typically turns into a molehill. Step 1 - Identify an optionable stock you'd like to hold long-term and purchase 100 shares (100 is minimum required to "sell" options contracts). e. But not on a stock this cheap. When I want to know which expiration is first after earnings, I look for the one with the higher IV. I turned 300 into 9k on nvda weekly options rolling from 2nd week to January into earnings. by number of daily average revenue trades. Options calculator results below. Nvidia said it was splitting its stock 10 to 1. It's a one minute video about a new point-and-click earnings play feature that charts expected moves vs. I assume this is mostly because investors rush in to buy options at the last possible moment to keep the play focused purely on the results. Does anyone tried that before and have experience to share ? It will also give you more conviction to let a losing trade become a positive one. Folks, I have a taps forehead move for y'all I know you're just as tired as I am seeing your favourite stocks (AAPL, AMZ, AMD, CRSR etc) absolutely crush earnings and then go into the red Even selling options before earnings can The market prices implied volatility into options premiums and that IV all but disappears the day after earnings. B. Their earnings were a slight double beat, and priced closed in the after hours at 19. Loitering Munition Systems (LMS): LMS segment saw a 60% revenue increase to nearly $200 I am the guy who sold BABA options before earning. Big guys trimmed last week, no big deal. Nvda was great because the vol kept adjusting for the week of earnings. Investors use the earnings release to indicate how the company will perf Tbh if you're new to options trading, I'd avoid earnings. Use a mental stop of 10% as well. We kindly remind all members to adhere to our community guidelines, help us maintain a friendly and inclusive environment where traders of all backgrounds can Get the Reddit app Scan this QR code to download the app now. Results: Iv on contracts still mid 70’s. And it's relevant because in my 5 years on Reddit, there's clearly a trend of They almost always have an increased IV before earnings that will drop after earnings is out. We are selling options to WSB degenerates using thetagang strategies! 🐌 🐌 🐌 In an earnings context, it is interesting to benchmark that break even against nominal values: what moves happened in the past during earnings (the last move, average move, . Everything from the post itself to the bots in the comments section asking predetermined questions for OP to Lost Ark, also known as LOA, is a 2019 MMO action role-playing game co-developed by Tripod Studio and Smilegate. Here’s a potential trade setup for the expiration one day after earnings. actuals for previous earnings reports and recommends strategies to use to exploit the next earnings report. 7% * 250 trading days = 17. Buying PUTS for anticipated earnings . When you’re entering a trade you needs a thesis, so look at the current economic status, look at the financials of the company how does that compare to other company’s in the sector. If there is an option expiring in 20 days with earnings near the expiration the option is composed of 1 earnings day and 18 “non Event” days. Wether we are buying or selling options through earnings, we are interested in knowing the exact break even for Tuesday. Original thesis was to hold long call options for TSM earnings run up but this stock kept tanking and forced me to continually average down and fucked me. Because of the viotility, options prices at $$. New lung cancer drug announced, calls up 12,000% overnight. I did buy 1 July 19 $975C hoping there's a pop on good numbers. I feel like all these bears started trading after 3rd quarter earnings. 22%, and the average move in the last two years is 2. 20% out-of Thinking about a diagonal spread (PMCC) going into earnings. Your calls will still go higher in value as GME tends to have a decent run up until earnings, I’d As an example, consider an option that has 30 days till expiry. Not always. Trading options from the long side is a low probability, high payoff trade. But, as the option nears its expiration, the IV becomes less significant to the price and the decay becomes more significant. If AMD tanks, there is probably 50-100 points easily Covered Call Strategy is one of my personal favorites and highlights the risk-hedge aspect of options trading. Format: SYMBOL , trade price (debit I paid to open the position), date/time opened So any contracts that are in that area will probably already have the earnings volatility priced in. I just like to do earnings options play. . Right now selling options is more of my preference, have been successful on the buy side with puts recently (for obvious reasons) but looking for option strategies that are better fit for event related sharp movements based on earnings, economic events, etc vs traditional buy/sell options. In my experience I've found that ATM theta and vega more or less neutralize each other on that last trading day. For earnings play, I usually buy put or call on the day of after-bell earning and close it next day once market opens to avoid crashing IV as much as possible. It doesn’t matter if it misses or not, the run up is still going to happen pre earnings. I have probably pulled premiums of 10% or so of my total account value (primarily a long term stock portfolio), and minus my loses I have a decent net profit number. 12 adjusted vs. Hello all, I usually do single legs options, short iron condors and strangles, but never done straddles. calculators and mental maths show you are correct. m. Obviously in practice the underlying price is but one of many inputs into an options price. 1K votes, 425 comments. As you point out, straddles with lower IV than normal tended to perform better through earnings. 6% level on a 3-month annualized basis), Powell will quickly cut in the second half of the year and it will be a nice recovery, and Option plays for Netflix (NFLX) earnings and beyond So this Thursday we have Netflix once again. I buy a put and a call before market closes. then when earnings are announced you have IV crush. You can trade earnings using options leading up to the earnings date, and after the earnings release, while being out of the trade when earnings are released. Other people are buying options, just as you are, to speculate on the earnings announcement. When IV is high, options premiums are more expensive, making it an opportunity to sell options and collect premium. It’s a straddle. Ummm, no. Can’t use stops effectively with options either or trade after hours. 9 million and net margin of 8. Here are a few more examples. The underlying was trading just over $16 at that time. Sometimes even if you play directional and get it right your profit is wiped out from IV crush. I do do a lot of diagonal spreads like this, just not around earnings in particular. g when I filter for Options for Implied Voalatily, the you have 50 lines or more with the various Puts and calls for ZTO. How will Wallstreet react? No clue. In looking at the option chain, 19 strike also had the highest volume at that time at 1. Im not looking for any secrets, but it would have been nice to at least mention what instruments you are trading with collars, cos that has a The only strategy i use over earnings is a time spread on stocks reporting earnings after the close or prior to the open on the following day so the trade is put on just prior to earnings being released. and since it's too unpredictable, do not play options with a directional bias thru earnings. Or check it out in the app stores   Put options, or just "puts," allow the holder to sell at the pre-determined price and are the options equivalent to short-selling the underlying stock. 6/0. I do this also on earnings. Fourth-quarter non-GAAP EPS was $1. It seems like buying calls and puts before a company announces its earnings (assuming the company is optionable) is a very common practice. Or if you think a stock is at a good price now you could sell a few months out in the money above the current market price for more premium and get a discount to current market rates. The community for Old School RuneScape Second, my exit strategies vary based on the type of option strategy I am using (e. Feel free to talk about general investing topics as well. IVR of 7% means , if you take IV back-calculated from AAPL options for each day over last 1 year, only 7% of the days (i. Or check it out in the app stores Exchange Traded Financial Options -- Options Fundamentals -- The Greeks -- Strategies -- Current Plays and Ideas -- Q&A -- **New Traders**: See the Options Questions Safe Haven weekly thread Anyone have experience playing a straddle the week Welcome to r/InnerCircleTraders, the largest ICT community on reddit! This community serves as a dedicated space where ICT's followers can connect, discuss, and learn from each other. 4 (from above) Can see from the above that I could make $100+ if IV rose as expected prior to earnings with the straddle protecting me from movement in the share price. Remember, option prices determine IV. Internet Culture (Viral) I straddled Nike at precisely $155 with December options during its last earnings. If you are ITM, book some profits and roll to a higher strike. 0% move in share price post-earnings NVDA runs up into earnings then goes -2% on triple earnings beat, kills all options players, and NVDA blue balls’ everyone by closing under its March 25th ATH. For instance, average total traded value of each leg of SPY is around 200K. I understand the vol and gamma crush but if you have puts on apple or some shit before earnings and they drop 5% the growing delta is going to outpace the crush effects of vol and gamma dropping. I'm going to have to go look it up. I bought a FUBO call 17. I learned that a rather safe way to earn some 20-40% is by acquiring a Straddle position on a stock that is usually prone to react heavily on earning announcements. Iron condors, or any non-directional strategy (straddles, strangles, IBs etc. The options that expire around earnings will already have higher IV. Just make sure to sell on or before the earnings date You can trade earnings using options leading up to the earnings date, and after the earnings release, while being out of the trade when earnings are released. About 21-34 DTE. Its pretty common knowledge that volatility rises before earnings eating profit from long straddles before ER what about 1 day expiry 60-80 delta ITM. Earnings day implies maybe a 5% move. There is no need for a stop loss. We haven't been placing a lot of earnings trades, because we've been finishing up a lot of research on earnings. IV will remain elevated leading up to earnings and long options will decay less (they will still decay some). PT / 5:00 p. Or check it out in the app stores so they buy a strangle. 3 It is often best known for its trader workstation, API's, and low margins. Though options aren’t useful for investing in general, more for Let's say a stock is at 15. You’re better off selling strangles at earnings than buying them But I think you have something here I’ve been experimenting with long iron condors on tickers that made big moves AFTER earnings. It is uncertain what the course of the stock price will be after an earnings release, but it is certain that IV rises leading up to the earnings date. Get the Reddit app Scan this QR code to download the app now. It dropped to $147 at one point and I made 30-40% on the put. This is used to determine the Call or Put Premium associated with the pricing of options (implied volatility). If you're still keen on doing earnings plays, vertical spreads are a decent way to play direction. and International, Federal, State, or local. Selling options makes money because people are willing to overpay for limited risk, unlimited gains. 6 million and Free Cash Flow 1 of $70. As mentioned, AAPL’s expected move is +/-5. Given the time of year, most of these stocks have earnings around 30 days from now, so I had to be careful to avoid ones with big earnings moves priced in since I am really trying to trade the non event volatility. If the stock price remains 100$ 1 day before earnings, would the option price be lower than it was 4 days before earnings? If so, what factors decides this? Time decay etc. After the ER, people started getting rid of it because it will most likely end up worthless, and it will not make them any money, neither for speculating nor for hedging. There's too much complexity if you don't know what's going on or why something happened, much less the added complexity of how the options chain reacted. You could just spend an hour or two skimming "Options for Dummies" available at your local public library and learn this, no need to scour social media or whatever. Basically, you buy a straddle or a strangle a set number of days before ER, and then sell it the day before earnings. 3% times $2 means we gained $6. Earnings Conference Call Information and Community Update. After earnings when hype dies down the market stops pricing it in and your position can be "crushed" by the IV leaving and making your calls and puts lose money. 50 means that option gains $9. It was released in South Korea in December 2019 by Smilegate and in Europe, North America, and South America in February 2022 by Amazon Games. As soon as the earnings are announced and the stock move happens the next trading session, the option prices go down as the market does not see any risk of sudden price movement. So I came to the idea to therefor look to profit off the rise in IV, by buying a long straddle 3-5 days before earnings day and planning to sell that long straddle on the day before earnings. 1). Reddit's home for tax geeks and taxpayers! News, discussion, policy, and law relating to any tax - U. First That's what I'm wondering though, the dividend's being priced into the option, so if they announce a dividend in the previous earnings, then calls should adjust to price in the discount as long as you buy a call with an expiration after the ex-date, if I want to take part in the action pre-dividend run then I would buy the calls, and sell them before the ex-date, and then I could buy back 39 votes, 48 comments. You give very little away in your post. Directional Bias: Ranges from negative (bearish) to positive (bullish) and By doing so, I generated a list of 16 stocks to look at. The break-even prices are each more than 4. "IV" often go down after earnings. 20. (Tweets, Reddit Comments, etc. Looking at writing Puts and noticed they’ve 4x better premiums for the week ending after the earnings. If I was gambling with other people's money, I would actually buy puts. Historical Move v Implied Move: We determine the historical volatility (log variance of daily gains) of the underlying asset and compare that to the current implied volatitlity (IV) of the option price. First of all, I'm pretty new to options so might say lot of wrong things. Just by the numbers. What you really need is to understand how the market is pricing post-earnings IV crush for the earnings week options. The current implied move on COST is 3. The IV will increase as earnings approach. There is much more to a winning trade than just end direction. For example, Elon Musk tweeting "Funding secured at $420 to take Tesla private" was both new and market moving at the time, and would be allowed. everything over 10% move Get the Reddit app Scan this QR code to download the app now. 10, a +10% move in the underlying. 40, (both including costs) - June 26, 2024 The Good. So generally I prefer to be a seller of options prior to earnings, such as covered calls or a call spread. I also do earnings pops as well - put and call everything you shouldn Delivered GAAP fourth-quarter earnings per share (EPS) of $1. Book SOME profits, leave a runner. com What a lot of people will do, though, is sell a strangle or iron condor the night before earnings, where the short positions are just outside of the expected move for earnings. Again, not true. Selling options around earnings is where I have my funI don’t risk a lot though. Volatility is high during earnings especially with a company like Tesla. One area where it’s common for hedge funds to buy/sell options is around non-thesis ‘risk events’, for example like trimming risk without selling in advance of earnings when your thesis is somethings non-earnings related; that’s a classic hedging activity. Or check it out in the app stores   ASML reported Q4 earnings earlier this week and delivered very decent Q4 results and a mighty order intake of over $9 billion, three times Happens all the time actually, lots of people/algos are trading on rumors, price action, and such; a lot of players places bet for the earnings report to go one way or the other, causing the demand for the options to go up, pushing the options prices, and thus IV up. And then the ext 50 lines are all for another stock. Also, check about income strategies where you win based on options time decay without guessing the market direction: income options strategies or Delta neutral strategies. However, in 2022, many stocks valuation came down, so many all already selling at a discount. Assumed 50% rise in IV leading up to earnings - based on 0. View the basic RDDT option chain and compare options of Reddit, Inc. The community for Old School RuneScape discussion on Reddit. Honestly, as a professional futures and options trader (and trading options on the futures market) holding an option to expiration is generally BENEFICIAL to a buyer IF there is what I call “tail end risk” value. Or check it out in the app stores   Exchange Traded Financial Options -- Options Fundamentals -- The Greeks -- Strategies -- Current Plays and Ideas -- Q&A -- **New Traders**: See the Options Questions Safe Haven weekly thread AVGO on earnings for a trade Let's Talk About: Exchange Traded Financial Options -- Options Fundamentals -- The Greeks -- Strategies -- Current Plays and Ideas -- Q&A -- **New Traders**: See the Options Questions Safe Haven weekly thread The sentiment early this year was that even though Q1 and Q2 2023 earnings might be bad, inflation will quickly go down (without a recession since the job market was still strong WHILE core inflation WAS around 3. 0% Positive operating cash flow of $71. 05 and the August 100/115ps for $1. However, there is some uncertainty during that time as well. 1 million and Adjusted EBITDA 1 margin of 27. ) can work for earnings. Different situations call for different option strategies which call for different exit strategies. If the stock has good earnings and bad guidance, then the stock price usually goes down. It doesn't work for every company. Then I held onto the call which had lost a lot of 8. bonus - if you don't know these terms, do NOT trade options until you do the But, when you go into an options profit calculator, it's telling you the value of the option across an array of share prices and times to expiration. Literally all of the vol remaining at T = 9 is also in the T = 1 option, because one is a subset of the other. 93 $190 may 20 for $8. I'm looking for an option strategy to play when I know a move is going to happen but I don't know which way it will go. Or check it out in the app stores Exchange Traded Financial Options -- Options Fundamentals -- The Greeks -- Strategies -- Current Plays and Ideas -- Q&A -- **New Traders**: See the Options Questions Safe Haven weekly thread This is when the IV goes from 130%+ to 50% or less Positive earnings can gap a stock down, and negative earnings can gap a stock up. Additionally, not many companies are reporting greater than expected earnings. As long as the stock price doesn't sail past your short options you can buy it back for a profit. When IV is high you buy an option at a higher price. And you absolutely must close the position before earnings or IV crush will eat it. The longer dated options have the wider standard deviation curve because of the time component. Am I thinking about this Most Anticipated Earnings Releases for the week beginning April 22nd, 2024. ) and current market expectations: the implied or expected earnings move. but option chain only has options at 15 and 16 strikes (and all other 1$ increments) we use the entire option chain, plot them in a graph and interpolate, use the power of math, to arrive at the IV at an option with a theoretical strike price of 15. Why in gods name would anyone fight the king of ai leading up to earnings lol. com and its 50,000+ readers to debate finance, investing, financial news, personal finance, real estate, stocks and crypto (from different view points). Hi, I'm posting a few thoughts on earnings that are intended to be helpful in trying to gain consistency in trading. I've seen several traders claiming to make thousands of dollars daily from options trading. 3. Intel seem like a strong consistent company so makes me wonder just how much it could move on earnings. When the IV comes in (IV Crush) it'll have a greater impact on the longer dated option. Earnings will be the 27th If you’re willing to take on more risk, you can sell options to take advantage of high IV around earnings. The day before earnings, STC the straddle and close the stock position. IV typically increases in the run-up to the earnings announcement date, only to sharply decline on the first trading day post-release, returning to its typical levels. 00 (which we lose because we're short). The last ER TSM was predicted to move 4. Revenue Growth: Revenue increased 33% year-over-year to a record $717 million, marking the seventh consecutive year of top-line growth. Iron condor Squeezes and whatever just look on YouTube or read an options book! Get the Reddit app Scan this QR code to download the app now. Usually 1 or 2 puts ATM, or just OTM to get a little more beer money if things work out. Even if the movement is against me, I can usually buy-to-close the position for a profit still because of the IV crush post earnings. The Options AI earnings calendar is the best place to see how the options market is pricing the future of US equities through reporting season. if you buy a put, at the same price out of money as the call, you will end with a profit if the stock moves more then ~8% you can get out break even until a ~5% pricemove. 39% means AAPL options on an average have 26. Strangles are the safest way to play earnings if you want to risk some doller on a potential big move like fb and nflx. Option plays for Tesla (TSLA) earnings & beyond After they put out their sales disaster we were pretty bearish and suggested 2 trades, the July 140/150/160 put fly for 95 cents which is now $1. If you're bullish on a stock's earnings, you could wait until after the earnings announcement, look for confirmation of market's bullish reaction to the report, wait until IV crush hits the options and then make your entry to ride the PEAD (post-earnings announcement drift). I have a stock that But if you buy an expensive straddle pre-earnings (high IV), and there is a large move during earnings, you may still lose money because the effect of falling volatility will decrease the price of the options that you bought and offset any potential gains from delta. That said, here's an Options can be worth it, but it is a huge learning curve. com's Reddit Forex Trading Community! Here you can converse about trading ideas, strategies, trading psychology, and nearly Focus on strategies in higher timeframes to increase your odds. 59 adjusted, per LSEG consensus So I've been reading about different earnings play strategies (apart from naked options) and one of the lesser known/discussed strategy I found is Iron Butterfly. My TA is just rsi, macd, and a couple of different moving averages (2year stock trader over here). It is the best way to start. IV is high before earnings because option markets see a significant movement in the stock prices due to earnings. 09, exceeding October guidance by 19 cents. I learned about the basics of it like the breakevens and how it should be played when volatility is high when entering the trade and will be low while exiting (which is the case in Unless you're buying way OTM puts a 5% drop on earnings for most companies are still going to net you a profit. One of the reasons I do go out a little further is because and a couple of people have mentioned previously about their fear of "IV crush" There is less exposure to that for the dates I have chosen. There are some sources that will tell you what IV indicates as expected move, but for any straddle/strangle you can take combined premium and know that you have to move that much into the money of your put or call to profit on the Say you want to play earnings on a company by buying put options with exercise price 95$ and the stock price currently is 100§. ITMN (bought by Roche). 20 of value per dollar that the underlying gains. As time moves forward, the option expiring after earnings will start dropping off the “normal days” that are being priced into it, making the earnings days implied volatility less diluted by regular day to day volatility. Posts and comments of new Reddit IDs of age less than 5 days, or IDs with very low or negative posting karma are This post will teach you how to properly trade the Earnings IV Ramp and the common mistakes most traders make. MSFT has seemed to have a steady incline up until this week, even though the sparked the GMDE deal. I mostly sell puts 21-28 DTE and try to return 12% on capital. Short a mnq before earnings. Google is your friend. Generally the IV gets higher the closer to a earnings date, because noone (well insider traders do) knows how earnings are. If you’re willing to take on more risk, you can sell options to take advantage of high IV around earnings. you will cut off your profit but you wont end broke, as you do now. I traded options back in the dark ages, Each day buy or sell stock to stay delta neutral. You can trade with fake money on webull but the app itself is more confusing for options than Robinhood. Earnings are pure gamble and the most random of option plays. So the IV factor will be largely negated tomorrow The research did not consider buying the options and selling before earnings. Because of this, your put options' price will generally rise as the underlying stock We would like to show you a description here but the site won’t allow us. The eye-boggling share price and implied volatility/ridiculously expensive premiums means that - even for an option play - people require a sh*t ton of capital AND have a fairly bold call/put strike price in order to make profit above 10k. The fucking earnings are coming. 64%, and their average one-day move is +/4. If the stock has bad earnings and better guidance, then the stock price movement usually goes up. 3 Earnings call gets people excited and they buy options a week before, this excitement and added volume makes options prices go up. In fact, nothing at all actually. NOTE: choose a stock in long-term uptrend that has high likelihood of continuation for this strategy, in particular. Reddit Inc options imply 14. Share Add a Comment. IV crush after earnings isn't an instantaneous event. As soon as the earnings are released the market reacts to it and IV will lower because now the uncertainity is AAPL data in Option Alpha's earnings tool. Most people will buy the option leading up to the earnings to profit off of increase IV and sell before ER. Only CLDR was opened such that exercise would make me lose money. But if a stock option has a high volatility, usually all the options of that stock have a high volatility. 39% implied volatility priced in. 4 million Achieved GAAP profitability with net income of $29. Would it make sense to buy a weekly contract for both calls and puts right before a company releases their earnings? Theoretically you can only lose 100% of the premium you paid for the contract, but the correct call / put would go much higher than the 100% premium that you lost? Normal days tend of have smaller moves than earnings. The IV will increase even if the implied move on earnings hasn’t. Welcome to FXGears. Generative ANNs are great, but they not far Costco is set to report its quarterly financials on March 2, after the market close. 6% Adjusted EBITDA 1 of $94. 13, exceeding October guidance by 35 cents. 2k. Since we trade so many different option strategies, which one of them has been the most profitable for you so far in 2023? To make this simple, I have listed the most common strategies, you could just upvote them in the comments and add your reasons of why your strategy is extremely profitable in the subcomments. true. Did you see NVIDIA earnings? $75 move damn near 100 points. Internet Culture (Viral) Amazing; Animals & Pets Earnings and options . Hold a long term put to protect the stock value, in case of a market price drop. So listing everfy option in that query does not make sense. 50, as the call will gain $0. I pick a direction based on how I feel about the company and sell credit spreads. People get drawn to options like moths to a flame because of the potential for giant returns. 4 and ended up moving 9. Long term, NVDA is going to be golden. Looking at the past, it seems that the expected move for Microsoft around earnings has almost always been overestimated. so even with earnings plays Ive done better with the underlying. From my point of view, it makes sense to sell to close the call option a day or two before earnings to capitalize on increased IV. In most cases, the front option converges with the HV over the course of the session right after earnings, and the back option converges with the further dated option. And lets be Late to the show but you had a plethora of options. I don't imagine the price of options actually changed that much in four days unless the price of the underlying itself had moved significantly away from the strike between the option being purchased and the actual earnings date. Edit: For those like me A collar option strategy, also referred to as a hedge wrapper or simply collar, is an option strategy employed to reduce both There earnings will continue to be beat for the next 2 - 3 years, they are the king of AI chips and company’s are lining up to get there newest models. But as for your conclusion that: >> Thus, no matter what the underlying stock does, the option price of the straddle should be higher after 26. 3). It's a process that takes place throughout the entire trading session. Or check it out in the app stores   NVDA Earnings Exchange Traded Financial Options -- Options Fundamentals -- The Greeks -- Strategies -- Current Plays and Ideas -- Q&A -- **New Traders**: See the Options Questions Safe Haven weekly thread The book "Option Strategies for Earnings Announcements" by Zhou and Shon covers pre-earnings long IV trading like this and also found negative expectancy, if anyone's interested. I opened the trade on Friday since earnings was going to be announced before market open on Monday. The main problem I noticed is that all the strategy I've seen works well when the volatility increases because it increases the price of options. Please note that nothing said by mods or community members in this sub should be Get the Reddit app Scan this QR code to download the app now. And unfortunately, there's no way to predict the market reaction. 5 and actual move is 4. The best thing with options is when done right you limit capital requirements, and can make money based We would like to show you a description here but the site won’t allow us. If REDDIT shows up for OUST for this EARNINGS play I see it going north of 20. 722 votes, 182 comments. The IRS is experiencing E. Join us for game discussions, tips and tricks, and all things OSRS! OSRS is the official legacy version of We would like to show you a description here but the site won’t allow us. The stock either goes up or goes down. This post is a great example of what "targeted marketing" looks like. Buying options leading up to earnings, but not through earnings, can be a way to play movement a bit To put this in perspective over the past few years, for every $1000 in net profit in options, I make about $1500 in credi put spreads, lose $400 in credit call spreads tied to the put spreads, and lose $100 on calls that are covered by long stock. Unless some crazy 2021 shit happens again, IV will drop after earnings. Assuming a trader makes 50% or $50K in a day, they'd have to be working with a $100K capital, right? Slow process, learning this, but I'm determined and hang out here on reddit options and thetagang forums. Starting off by selling options and learning to sell cash secured puts and covered calls. YOLO posts must be a With the stock now back at levels similar to last earnings release, here are a few bullish Intel option trades for playing a recovery in the name: 11/13/2020 expiration, sell the 45 put for 0. It operates the largest electronic trading platform in the U. But can practice your options and strategies-also there are many many options strategies. Daily Active Uniques (“DAUq”) increased 47% year-over-year to 97. If it doesn't close itself in a couple of days, it will usually sell the morning before earnings. IV will be dead meaning cheaper options and you get paid out from 1) reversion to the mean or 2) continuation. Get out Before earnings. You have already put risk into the trade. My thinking going into the trade was that the price of the stock post earnings would move between 420-450, and I would close the trade right after earnings on Monday, at open, before IV crush fully hits my position. Stop losses? If it’s a true “ HUGE MOVE” earnings play the one contract will be worthless by the time market opens. But as you note, you risk the straddle becoming directionally biased due to movement in the underlying before earnings, so Hi, I am interested in buying a straddle or buying a call on longer maturity before earnings (like 2/3 weeks before) and sell corresponding options the day right before earning release. $5. It's not so much the earnings, but rather the market reaction that's important. That drives up the premium. In that way, the delta, gamma, and theta are accounted for. Near term, might go down. I’ve been observing the market for quite a while on how different option contracts react on the earnings announcements. 35. 48 or 11/13/2020 expiration, sell the 45/40 put imo, do not play options that would be hurt by decrease in volatility (long vega) thru earnings. As a company approaches their earnings event, we usually see an increase in the implied volatility for their options. The IV number for the option is based on the average of all of this. I’ll do options on nvda, msft, MDB because options give me much more leverage than I can possibly do with their share prices even if I’m right on the direction and size of the move. Is there a way of calculating based on the underlying what an options premium will be. With markets closed today, I figured I'd sit down and take my time to share some of my tips for (options) day-traders. long options (buying straight calls & puts) are long volatility (so as volatility decreases they lose premium), and after earnings you usually have massive drop in implied volatility since the Get the Reddit app Scan this QR code to download the app now. I'm pretty new to options trading and have mostly focused on trading options targeted around earnings. The #1 Reddit source for news, information, and discussion about In the case of most options trade, it's up to you to win or lose that trade. TOS has their "MM move" or market-maker move, which is expected move. Reddit will host a conference call to discuss the results for the fourth quarter of 2024 on Wednesday, February 12, 2025, at 2:00 p. Hoping to get some insight around my AMD option calls and future strategies for success. Earnings reports and special events carry a much higher IV, bc there is a larger disagreement about what the future may hold. Best strategy might be to play calls on popular stocks weeks out from earnings and sell the calls the day of earnings for a profit. Non event days maybe imply less than 1% a day moves. View community ranking In the Top 1% of largest communities on Reddit. Without accounting for the rise or fall in stock value, just from pure options if I have to generate like a $1000 per month, is it possible? If the IV "ALWAYS" dropped after earnings, everyone (with a little brain cells) would sell options before earnings, which would send opt-in prices lower, which would bring IV lower, which would mean it would no longer go down after earnings. Or check it out in the app stores     TOPICS. If the $1 call has a 20 delta, then the underlying will have to be approximately $2. What has worked for you ? There is some merit to using pre earnings increasing IV to help offset theta decay in the hope that in the period leading into earnings, the underlying moves enough to make a profit. However, selling options involves unlimited risk, and you need to have a solid understanding of options trading before “Wouldn’t volatility as earnings approach raise the premium”- not necessarily. If you do end up playing earnings, I would be looking forward by like 2 weeks or more and look for large orders in that window. IV of 26. The answer probably lies in the returns that you have achieved. I'm not really too worried about earnings right now. When earnings are announced, an ATM call is likely to lose value, even if the stock rallies, due to what's known as IV crush. Hold overnight for earnings and profit at open. 1M subscribers in the options community. Traders should fully understand moneyness (the relationship between the strike price of an option and the price of the underlying asset), 1 time decay, volatility, and options Greeks in 54 votes, 21 comments. Most of these stocks have a bit of earnings vol priced in on the 30dte So: 6% change in IV for the front month times $-1. Anyways, in TSM case, predicted move for TSM after ER is 4. Here >Both of those options will respond almost identically to the ER. However, selling options involves unlimited risk, and you need to have a solid understanding of options trading before Your profit calculator will show a deceptively nice profit area prior to earnings. Strong Fourth Quarter: Fourth-quarter revenue rose to $197 million, a 6% increase from the same period last year. Implied volatility in options tends to overstate realized volatility over the same time frames so I should always sell options. Played earnings expecting a 100%'er. The positions I took are $200 may 27 for $13 $190 may 27 for $8. However, if I expect the stock price to go up significantly from earnings, it could make sense to hold through earnings as the increase in the stock price will outweigh the drop in IV. This should give you an idea of sentiment in this stock and given that the front months IV is always going to be a bit pumped going into earnings, I would avoid buying outright calls, you would need to be very right to avoid getting killed by It's a bit more complex than just high IV. 5 higher for the call to be worth $1. I do this a lot. 5 exp Friday and it’s up big AH. And part of the reason is certainly that to mitigate the leverage of options I have to take smaller positions if I don’t want excessive risk. Don't forget that today was earnings for fubo. 0 billion of cash from operations and $11. What has been your consistent go to option strategy that is highly successful and in which stock ? Recently I have been buying weekly butterfly options around expected move on both sides. Playing a stock through earnings is akin to gambling, IMHO. This is different than a straddle because you buy out of the money options, rather than the at the money option so that their margin goes down less. Tools & Strategies For Earnings Options Trading | earnings-watcher. We've done a lot of research on earnings strategies, we backtested all types of tickers, sectors, and industries. In your case there’s 3 options you can play: 1) the stock continuously go up and you Posted by u/Silly_You9597 - 1 vote and no comments I have been following earnings and have been tracking stocks performance after earning days. 2). As others have indicated and you seem to grasp, IV gets crushed after earnings. The trade is meant to capture the difference between the IV crush and the time decay between this weeks options and next weeks options. Consider joining r/PlayStation for your daily dose of memes, screenshots, and other casual discussion. So yesterday (Jan 20) I bought one NFLX $400 PUT Exp. 209K subscribers in the thetagang community. In the first day or two after earnings, BTO a vertical debit spread with deltas such as 40/10 or 50/20 in the direction of the earnings surprise, ie bull call for positive surprise or bear put for negative surprise. Let us say in 10 days time, there is an earnings event. After the earnings report drops, the range of possible outcomes is much smaller since we get the numbers for the past quarter and forward guidance. The market understands that a lot of volatility will be realized during the event, so the IV increase is sort of a mathematical artifact, and doesn’t actually mean the stock For options traders, earnings seasons are renowned for their implied volatility (IV) dynamics. 02%. It’s actually much much easier to trade options the day after earnings, since the price direction starts being established. u/rylar. Let's Talk About: Exchange Traded Financial Options -- Options Fundamentals - Posted by u/tlmgm - 1 vote and 14 comments Trading options involves more risk than buying and selling stock, and only experienced, knowledgeable investors should consider using options to trade an earnings report. The company brokers stocks, options, futures, EFPs, Didn’t MU retreat back to around 137 Friday? With earnings happening this Wednesday, is anyone getting the impression that a disappointment was pricing in? Daily Active Uniques (“DAUq”) increased 47% year-over-year to 97. That is a beginners understanding and the answer is EMH. It was wild. 5 days) AAPL IV was lower than 26. I’ve lost 100k playing earnings so far this year trying to play directional earnings and it’s extremely difficult. Unfortunately there is no such thing as “intelligently investing” into earrings plays. If you’re looking at it in a vacuum, you can just go by delta. I've traded many calendars through earnings, and sometimes it can be bewildering to see a front month option not crush as much as you expected at the open (it occasionally stays up, or even increase), and you're basically hawking the option's decay while Get the Reddit app Scan this QR code to download the app now. Yeah love this one! Sell out of the market at a price you're willing to buy at. The earnings report causes the stock price to dip, but the option still loses value overall because the volatility crush offsets the stock drop's effect on the put. If you buy a few weeks earlier while the IV is lower, you pay less for the straddle. g. I have stayed away from options during earnings in the past The iv on the front options is higher then the back options because there is more uncertainty with the earnings release then. this is called hedging. Meanwhile our long option also increased in price due to IV increasing, but its IV didn't increase by that much. What is important to understand, and the ACTUAL beginner option pricing model to follow is, options price move with stock price (delta), the longer it takes for your option to be in the money the less money you can sell it for (theta), and the more the price moves around, the more you will have to pay for options (volatility) Options AI Calendar: Earnings Calendar with expected move and historical moves Options AI Options AI Expected Move Calculator The Reddit home for PlayStation 5 - your hub PS5 news and discussion. I read abuot one particular experiment where 2 pro traders traded opposite signals at the same time (i. 3 billion of It's because the put is so deep out of the money, and it was so overpriced prior to earnings. The data on earnings have now been compiled, and we are now combing through it. With I think they'll beat earnings, and crush forward guidance. use them before, or after, unless you have a short volatility strategy with little delta and vega exposure (or are short vega). At closing bell, the options were break even. So I bought a few Facebook puts a few days ago. Almost every play doubled or tripled, about 5-6 times in row. you should have bought a put and a call before earnings. You see them most often on the penny stock subs. I've personally played earnings enough to notice that even if you're right, the volatility crush that comes immediately after earnings wipes out any gains even if you do end up being right about the direction. If the stock has good earnings and better guidance, then stock price movement usually goes up. You're better off looking to sell premium into earnings than buy it. I had been holding AMD for quite some time and decided to purchase call options about a week and a half before their earnings announcement. Those who subscribed to it please let me know your thoughts if it is worth $99 per month. EARNINGS: OUST May 9th 4pm. Reddit reported third-quarter results that exceeded analysts' estimates and gave a forecast for the current period that was well ahead of estimates. Buying options leading up to earnings can be a good play though - for the exact same reason (everyone else is buying them). When the calculator tells you that the option is worth more 4 months from expiration, compared to 4 days before expiration That's theta. 8K subscribers in the EarningsWatcher community. 50 I’m doing 818 votes, 152 comments. Hi i am relatively new to options trading and learned that IV peaks right before earnings and then crashes after earnings. In other words, you won't benefit much from selling overpriced volatility if you're simultaneously buying overpriced volatility to The earnings report causes the stock price to jump. 1. With a share price of less than $6, why not just trade the stock and avoid the friction of the bid/ask spread on the options. Made my year and then some Reddit community for TheFinanceNewsletter. We would like to show you a description here but the site won’t allow us. Or check it out in the app stores   Post Earnings Options Strategy? Now that NVDA earnings are out and everyone has made $$$, what's the next play for this stock? Looks like the stock is going to take off at the open this morning (Thur). Earnings are to come in 4 days. vega is sensitivity of an option to changes in volatility and is the amount the option premium will change per 1% change in volatility of the underlying. The other option is to stay away and play the reaction to the earnings Some recommend that one buy a strangle or straddle a week before earnings and then sell near market close on the day of earnings (assuming earnings after market close). on Yahoo Finance. Vanilla options markets are way too thin and illiquid to get in/out of positions. 2 million Strong revenue growth of 68% to $348. Nvda was So, how do you trade options after a company releases earnings? When a company announces their earnings report, investors gain insight into recent and future financial performance. Most companies move 5% on earnings that will not make your options 2 What are the best options (no pun intended) of generating steady income through options? I have about 150k worth of stock in my trading account. Working w/ the government is not an easy thing to do, they don't want to pay for things they don't truly understand the value of. did David Benioff and D. Consider selling the put for at or even above the money, to reduce total value at risk to the vicinity of 4% to 8% of the entire value. But even highly traded options like SPY, QQQ, TSLA, NVDA have low volumes. I can't figure out why we can't replicate the same thing 90%+ probability of profit with SPX? You can’t sell weekly OTM options easily if the stock is ripping from 500 to 800 in 6 weeks. one was going long, the other short at the same time, same quantity, same instrument, same everything, but both were free to do whatever once the trade was open), and I've been buying ITM options between 1-2 months, rely heavily on TA and find an option with a break even price within ~6% of current price. With a history of a less-than-expected move, we’ll focus on selling options. It would be different if this was a retail boom but Nivida has Microsoft/Apple/DY/ so many HUGE company’s buying. Weiss’ adaptation of the Three Body Problem, boost or hurt the streaming giant. Call spreads are harder for me to stay in, but if it’s a really bad result in an earnings report, I may sell a 21 dte call spread on a company if it looks really bad post earnings. 1/28 for $56 in hopes of learning about the infamous IV crush from firsthand experience TW displays an expected move on their option chain. Option values decline over time so I should always sell options. Sometimes it pays dividends and many times the stock overshoots the range to loose money. Trading short premium or credit spreads is a high probability, low payoff trade. S. ADMIN MOD Earnings . 35 Ok I just entered ZM 91C -1/+1 and 69 -1/+1. The layout for these is very little for an option that has nearly 80 days of play left. Calculating options value . My advice would be to learn more about shorting options in general, how volatility affects option price, and work your way up to doing ICs Well that’s the key it’s the IV. This is a community dedicated to the discussion of earnings reports of various companies. 00. Most of my options are December $1000C/$1400C spreads The majority of my holdings are NVDA shares bought in the $600s. For options traders, earnings seasons are renowned for their implied volatility (IV) dynamics. vertical spread or diagonal spread). 39%. Or check it out in the app stores Exchange Traded Financial Options -- Options Fundamentals -- The Greeks -- Strategies -- Current Plays and Ideas -- Q&A -- **New Traders**: See the Options Questions Safe Haven weekly thread hengy77. Now To add here, fewer ppl buy calls after earnings (or even day of), so as soon as earnings come out the price of the option tends to tank (even if the stonk went up). Most options buyers I see on options based subs who trade earnings tend to play the run up to the earnings - They buy options and get out a day before the earnings are announced. Posted by u/cragfar - 125 votes and 37 comments 159 votes, 80 comments. 00 and coming back and setting a new higher low of about 15. 8. New to options and noticed today that Intel INTC has an earnings release July 22nd. It can work, but the tricky part is that vol doesn't always peak the day before earnings, and the amount of time from low vols to high vols can vary quite largely between companies and even ER's of the same ticker. I doubt they’ll have anything extraordinary to Not really, it has been tried many times before. Next week I will be the guy to sell both BABA and NVDA options before earnings. It's always a crap-shoot though, which is why I I admit I am pretty new to the world of options, but I dont understand how participating in NVDA earnings is a wise choice. etdxlyx kacjo lqpqba exjni dvpor igfx qrresgkk mjzlx avfus tzcub lsgsco dovuq olo vice bxwvwjt