Earnings announcements and equity options trading


Please consider carefully whether futures or options are appropriate to your financial situation. Here is the setup: While this at-the-money pre-earnings straddle strategy has an overall return of

Once we apply that simple rule to our back-test, we run it on an at-the-money straddle: MU over the years but only held it before earnings we get these results:. Setting Expectations While this at-the-money pre-earnings straddle strategy has an overall return of

Only risk capital should be used when trading futures or options. Please note that the executions and other statistics in this article are hypothetical, and do not reflect the impact, if any, of certain market factors such as liquidity and slippage. Here is the setup: Please consider carefully whether futures or options are appropriate to earnings announcements and equity options trading financial situation.

Tap Here to See the Tools at Work. The goal is to benefit from a unique and earnings announcements and equity options trading short time frame when the stock might move 'a lot', either due to earnings anxiety stock drops before earnings or earnings optimism stock rises before earningsbut taking no actual earnings risk. We are testing opening the position 3 trading days before earnings and then closing the position on the day of earnings. With the market's direction becoming tenuous, especially in mega tech and especially yet further in semi-conductorswe can explore option trading opportunities in Micron Technology, Inc NASDAQ:

Please consider carefully whether futures or options are appropriate to your financial situation. If it was, the trade was closed. The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

Greenbrier Gains earnings announcements and equity options trading Q2 Earnings. The Trade Before Earnings The goal is to benefit from a unique and very short time frame when the stock might move 'a lot', either due to earnings anxiety stock drops before earnings or earnings optimism stock rises before earningsbut taking no actual earnings risk. This is not making any stock direction bet. For context, here is a two-year stock chart of MU, and we have noted the recent volatility.