Options Playbook Radio 227: COST Backspread Capturing Earnings
Options Playbook Radio · The Options Insider Radio Network
September 27, 201815m 56s
Audio is streamed directly from the publisher (traffic.libsyn.com) as published in their RSS feed. Play Podcasts does not host this file. Rights-holders can request removal through the copyright & takedown page.
Show Notes
Costco (COST) has earnings coming up next week. We're going to do a backspread with puts, or a ratio volatility spread. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.
Specifically:
- A review of last week
- COST will announce earnings on 10/4
- What does the chart say?
- Let's do a backspread with puts
- What's the expected move?
- What's our take?
- Selecting the expiration and strikes
- What if we're wrong?
- What if we're right?
- What is the maxium risk? Reward?
- What happens the farther you go out in time?
- Does it work for every underlying?
Do you have a question that you want answered on a future episode? Send them to Brian at [email protected], or to the Options Insider at [email protected].