Options Playbook Radio 181: AMZN Skip Strike Butterfly into Earnings
Options Playbook Radio · The Options Insider Radio Network
October 26, 201722m 17s
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Show Notes
This is probably the biggest week of earnings reporting, when the most valuable stocks report. There are things to take into account because of earnings:
- Remember that implied volatilities rise around earnings
- Why a skip strike butterfly?
- Setting up the trade to pay for itself
- Where is AMZN trading right now?
- What is the long straddle aka the expected move
- Using the long straddle to select strikes
- Earnings-related risks
- What is the expected move?
- Setting up the trade
- What is the upside? Downside?
- Nuances of options pricing
- Remember time premium