A Few Options Strategies to Consider Earnings season can be a time of higher-than-typical volatility, which can mean an increase in risk as well as opportunity.
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Learn some of the options trading strategies you might use during earnings season. Implied volatility IV may also rise to unusually high levels in the days or weeks leading up to an earnings release.
Options Action: Nike earnings
Many option traders view price movement as a potential opportunity. Some involve a directional view while others look for the stock to remain within a specified range.
These include volatility, uncertainty, and the potential for an outsize move in the price of a stock as earnings data is incorporated.
So the stakes can be video earnings on options going into an earnings release. If the company beats earnings expectations, there could be a significant move to the upside.
After all, volatility is a measure of uncertainty.
An earnings release essentially removes that uncertainty—for the current quarter, anyway. But that may not be the best options strategy for earnings season.
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Because stock options prices are typically elevated thanks to higher implied volatility vol levels before the release. They often come back to earth after earnings are reported see figure 1.
- Произнесла Николь с легким оттенком сарказма в голосе.
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- "Этот мир был моим домом, - сказала она .
Implied video earnings on options is a measure of uncertainty, and earnings season is a time of major uncertainty. When earnings are released note the blue light bulb and the red telephone signifying the earnings release and conference callthe uncertainty is removed.
Options Action: DraftKings Earnings
The result, typically, is lower implied volatility. This dynamic can be key to understanding how to trade earnings with options.
Создания, которых вы с папой называете "гигантскими светляками", проводят над каждым полем точно рассчитанное время - каждую неделю или месяц. И с водой у них обходятся так же бережливо, как и с фотонами. - А где Эпонина. - поинтересовалась Николь, глядя на уставленный едой стол посреди комнаты. - Пакует вещи, - проговорила Элли.
For illustrative purposes only. Past performance does not guarantee future results. The following, like all of our strategy discussions, is strictly for educational purposes.
It is not, and should not be considered, individualized advice or a recommendation. Options trading involves unique risks and is not suitable for all investors. Please note that these examples do not account for transaction costs or dividends.
Transaction costs commissions and other fees are important factors and should be considered when evaluating any options trade. Orders placed by other means will have higher transaction costs.