Earnings & Events-Related Option Plays

Quote from FAST.AM:

Dont ask me this was down 30 last night..
350 is resistance wonder if it will run from here?

That's exactly why I went so far out of the money with this. It is difficult to predict.

AZD
 
I almost hesitate to make this post - but Wellcare (WCG) now has a complete options chain going all the way down to the 5 strikes. (This was trading over 120 two days ago!)

Implied volatility is spectacular at this point. I guess FBI raids have a way of increasing anxiety. :)

PLEASE do your DD before going long or short on this.

Remember, something like this can be halted at any time, so be careful if you are legging into spreads, and be careful if you are downright purchasing or shorting the underlying thinking that you are safe with a stop in place. YOU ARE NOT.

Good luck to all.

AZD
 
what is their history in regards to meeting/beating estimates? you could sell (1) 50 straddle and (1) 55 straddle then buy back the (2) strangles in the am...
 
I quickly looked at SOHU, surprisingly for a China internet company it doesn't move as much as I would expect post earnings historically. I like the short 55 straddle as well.
 
Quote from yip1997:

Best to do a +ve gamma play, not a vega play. The risk is just one day theta risk.

Can you tell me what +ve means?

I saw that term used years ago but have never found a definition.

TIA.
 
what is a naked call?

i have searched over the internet and got a rough idea about the naked call.

CME 780 Call is trading @ .40 cent. No way its going to 780 in 15 days. so if i sell the call which is @.40 cent what is my profit and whats my lost?

anyone thanks
 
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