The best and safest way to profit from iv crush during earnings is to sell options, Either covered calls or cash secured puts, because of the uncertainty and big swings in price the premium received is much higher than when the stock is not reporting earnings.. Let us use $Tesla Motors(TSLA)$ as an example as they are reporting earnings next week. If you own 100 Shares of tsla and you are bearish you can sell a call option at the strike price you are comfortable selling the 100 shares. If tsla reports good earnings and the price rallies and expires above the strike of the call, you get to sell the shares at the price you want and get to keep the premium as well. If tsla reports bad earnings and the stock crashes you get to keep the full premium.
Let's say you want to own 100 shares of tsla at $140. You can sell a put at $140 strike you can collect $420 as premium. If Tsla drops below $140 you can own the stock for $140-$4.2 = $135.8. If Tesla stock rises after earnings you get to keep $420. It's a win win strategy but you must only do it on fundamentally strong stocks.
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Which stocks are you willing to use these strategies on?@TigerEvents @Alan聊特斯拉 @Big__Boss @Tiger_Earnings @港股窝轮Jenny
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- whimsie·04-22👍LikeReport