Timing a non-directional earnings play

K

kevagonia

Assuming I am going to make an earnings play: specifically a one-day Iron Condor for DKS overnight tonight, when should I time my entry? I assume some stuff can go down today and I should maybe wait until late in the day. I'm going shortest duration (4 DTE), slight bullish skew. Likely short strikes ~ 30,37.

Earnings on this underlying are announced before open tomorrow. I am curious about timing entry and exit from those who maybe are not in the "don't trade earnings" camp.

Thanks-

-Kev
 
>> Assuming I am going to make an earnings play: specifically a one-day Iron Condor for DKS overnight tonight, when should I time my entry?

Two days ago, like I did mine.
 
Please be aware that holding any position through earnings has huge risks. Even if backtesting shows good results, you should always assume a 100% loss and position size accordingly.
 
Kim Klaiman said:
Please be aware that holding any position through earnings has huge risks. Even if backtesting shows good results, you should always assume a 100% loss and position size accordingly.
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sounds fun! I am adjusting/closing/finalizing all other positions to avoid earnings and took this into account before they were opened. My questions was more specific to an earnings-only play. Thanks

-Kev
 
Kim Klaiman said:
Please be aware that holding any position through earnings has huge risks. Even if backtesting shows good results, you should always assume a 100% loss and position size accordingly.
More...
It's certainly more of a gamble than my typical fare.

-Kev
 
Aquarians said:
>> Assuming I am going to make an earnings play: specifically a one-day Iron Condor for DKS overnight tonight, when should I time my entry?

Two days ago, like I did mine.
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Due to the better pricing you received at that time? The stock has moved one point since that time. Thanks,

-Kev
 
kevagonia said:
It's certainly more of a gamble than my typical fare.

-Kev
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Another possibility is to wait for the earnings report and evaluate the quality the earnings, revenues, company current competitive position, etc and think like an institution who has a long term horizon because of the amount of money they have to invest.

Having a sense of how an large institution may look at a company can give you a good clue on whether to fade the move or to determine if the move may have some legs. Besides, you may get better option pricing for a long option position after the earnings release.
 
kevagonia said:
Assuming I am going to make an earnings play: specifically a one-day Iron Condor for DKS overnight tonight, when should I time my entry? I assume some stuff can go down today and I should maybe wait until late in the day. I'm going shortest duration (4 DTE), slight bullish skew. Likely short strikes ~ 30,37.

Earnings on this underlying are announced before open tomorrow. I am curious about timing entry and exit from those who maybe are not in the "don't trade earnings" camp.

Thanks-

-Kev
More...



Since you want to take advantage of the option IV crush due to earnings the best time to enter is just before earnings at market close - around 3:30pm EST. In your case that would be today.

Your option selections depends on the price of the underlining and your expected move after earnings.
 
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