Alibaba will report its earnings on May 4th.
Usually the front month option should have higher IV than the back month, i.e. May05 & May12 should have higher IV than May19.
I tried to find any special events that will occur before May19 but could not find anything.
What am I missing here?
Can we expect the IV crush for the May19 options after earnings?
If yes, then reverse ATM calendar just prior to earning date could be a good play.
Usually the front month option should have higher IV than the back month, i.e. May05 & May12 should have higher IV than May19.
I tried to find any special events that will occur before May19 but could not find anything.
What am I missing here?
Can we expect the IV crush for the May19 options after earnings?
If yes, then reverse ATM calendar just prior to earning date could be a good play.
