Using Options During Earnings Season

user
koolgal
2022-11-26

🌟🌟🌟Using Options is a great strategy  during Earnings Season as Earnings reports have the potential to cause significant price swings.  In fact it is quite common for a stock price to increase or decrease significantly immediately after an earnings report.

The first step when trading earnings with options is to determine what direction I think the stock could go.  This is important as it will help me to narrow down which options strategies I will choose.  

For example if I expect that there will be a positive price move after an earnings report, I would buy call options.  Alternatively, if I expect that there will be a negative price move after an earnings report, I would buy put options. 

In addition to this, I also need to consider the magnitude of volatility the stock may exhibit around an earnings report. 

For example, Coinbase would be a good stock to short in the light of the recent collapse of FTX.  In contrast Coca-Cola would be the contrasting opposite.

It is also important to do indepth research prior to forming an opinion about how those earnings will be perceived by the market. 

A note of caution to novice investors.  Trading options can pose significant risks if they are wrong about their expectations.  Options can magnify losses because of the potential for large swings after an earnings announcement.

So in using Options to trade during earnings season, it is important to consider the risk appetite of the individual investor and his trading goals.  If Options trading is used well, the gains are also magnified too. 

@OptionsTutor  @MillionaireTiger  @TigerStars  @CaptainTiger  @Tiger_chat  

How to Use Options in Earnings Season?
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Comments

  • wigglyz
    2022-11-27
    wigglyz
    COIN will end up a bigger share of the BTC pie as many BTC exchanges fail but the overall pie will be smaller as many are leaving crypto and never coming back.
    • koolgal
      Thanks for sharing your insights and knowledge
    • koolgal
      Yes I agree with you
  • ChaoAhBeng
    2022-11-27
    ChaoAhBeng
    Options is another consideration if you have ready funds. I know of some into options
    • koolgal
      Thanks for sharing your insights and knowledge
    • koolgal
      Yes options will turbo charge your returns if used wisely.
  • Benly8
    2022-11-27
    Benly8
    Still learning how to trade options. Seems like it is a very powerful tool
    • koolgal
      Best of luckπŸ€πŸ€πŸ€
    • koolgal
      Yes it is a little more complicated than buying shares.
  • HelenJanet
    2022-11-27
    HelenJanet
    Good morning and Thanks for sharing πŸ‘πŸ‘πŸŒˆπŸŒˆ
    • koolgal
      Have a wonderful Sunday πŸ–οΈπŸ–οΈπŸ–οΈ
    • koolgal
      My pleasure
  • CYberviRus
    2022-11-27
    CYberviRus
    Thank you
  • pixiezz
    2022-11-27
    pixiezz
    Coinbase maybe another FTX , very careful.
    • koolgal
      Thanks for sharing your insights
    • koolgal
      Yes you are right.
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