Great article
Option strategy in this earning season: small bet and big win
@OptionsDelta:The CPI data will be released tomorrow and the market will surge. There are two possibilities: one is positive data in advance and strong bulls, and the other is short covering. I don't guess, but either way I made money on my short put. There's going to be a shift tomorrow, so today's not a good time to do a short put, so tonight you can take a little bit of a bet on this week's short put and lay out Disney and Affirm earnings reports. $Walt Disney(DIS)$ reports earnings tomorrow morning, and based on Netflix's results, Disney is also likely to be less than expected and more pessimistic, so I'm going to put my money on $DIS 20220218 130.0 PUT$. Disney can make a profit if it drops to 128, or lose all its royalties if it doesn't. On the other hand, buy call and put$DIS 20220218 144.0 PUT$ $DIS 20220218 144.0 CALL$.This is straddle strategy. Disney has dropped 7.7% since Netflix's earnings report. Better results could lead to a rebound, but there is a possibility of a drop, so Disney can make a profit if it moves above $11 per side. But if the amplitude isn't good enough, you're going to lose all of premium, so it looks like a better bet to put on one side. $Affirm Holdings, Inc.(AFRM)$ reports earnings on Friday. $PayPal(PYPL)$ fell 17% in the previous earnings reports. AFRM has ties to Amazon, but it can also be volatile, as growth earnings have always been. Put can be selected$AFRM 20220211 50.0 PUT$,You can also choose next week's. Choose buy put or straddle, it is recommended to consider it according to the profits you earned before. In the two strategies, I prefer to buy put , and the loss is only the profit from short put before, which is very cost-effective.
Option strategy in this earning season: small bet and big winDisclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.