How to use combo options to trade earnings season?
@Tiger_comments:
Combo options are option trades constructed from multiple contracts of differing options. The combinations enable more precise risk management techniques, offer the potential for higher returns, and reduce the margin requirement.In the upcoming earnings season, what combo options are recommended to use?As the broader market $S&P 500(.SPX)$ already dips too much, the probability of the plunge in this earnings season get lower. The bullish combo strategy can offer insurance on top of “sell put“.1) Bull Put SpreadImagine you believe a stock won’t go down too much. In a bull put spread, you: Sell a Put Option: You sell a put option because you think the stock won't fall below that price.Buy Another Put Option: You also buy another put option