AAPL Earnings - Oct 18
- Thread starter ForexForex
- Start date
Why would you buy a put before earnings are released?
Isn't that what they call gambling?
Chances are high that they're going to beat (when was the last time that they didn't?) and there will be a whole load of euphoria which could last a few days (or more, who knows). I'd rather buy a put into that. Also surely AAPL's IV will drop like a stone post-earnings? I thought that was the way these things usually work, therefore your put would be cheaper.
Markets are in optimistic mood at the moment; AAPL's earnings could be the froth on the froth.
Isn't that what they call gambling?
Chances are high that they're going to beat (when was the last time that they didn't?) and there will be a whole load of euphoria which could last a few days (or more, who knows). I'd rather buy a put into that. Also surely AAPL's IV will drop like a stone post-earnings? I thought that was the way these things usually work, therefore your put would be cheaper.
Markets are in optimistic mood at the moment; AAPL's earnings could be the froth on the froth.
I'm not buying AAPL options. I'm buying QQQ options because AAPL makes up 14% of the QQQ and QQQ options are cheap. Another bonus is that QQQ options trade till 4:15pm, so if AAPL moves big after hours but before 4:15pm you might be able to take advantage of the gap for the next day.
Elite traders - such as myself - think outside the box.
GordonTheGekko
Guest
iPhone 4S initial sales are strong. Just like the Macintosh in 1984.
Quote from ForexForex:
I'm not buying AAPL options. I'm buying QQQ options because AAPL makes up 14% of the QQQ and QQQ options are cheap. Another bonus is that QQQ options trade till 4:15pm, so if AAPL moves big after hours but before 4:15pm you might be able to take advantage of the gap for the next day.
Elite traders - such as myself - think outside the box.
lol, elite, good one.
On the few occasions when I have been watching AAPL's earnings, IIRC they came out after 4.15pm. But what does it matter? If they come out at 4.14pm then one nanosecond later the QQQQs are going to move in proportionate lockstep. Or do you think you can beat the QQQQs to it?
Quote from jj_:
If they come out at 4.14pm then one nanosecond later the QQQQs are going to move in proportionate lockstep. Or do you think you can beat the QQQQs to it?
Yes ....... But you might get in for a possible gap the next day. I did italicize might in my post above to indicate it's not a sure thing.
Tomorrow - October 18 - is the big day. Trade plan is to buy 1 strike, maybe even 2 strikes OTM QQQ Oct22 puts at about 3:45pm EST. Will update when trade is opened.
Trade plan is to buy 1 strike, maybe even 2 strikes OTM QQQ Oct22 puts at about 3:45pm EST. Will update when trade is opened.