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Episode 159 (Yiddish): Should I Buy Options for Earnings?

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Chaim Ekstein | Git Gelt Podcast avatar
Chaim Ekstein | Git Gelt Podcast

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specific options. feedback. Basic options options ABC advanc topic address in text message 8455721212 messages but unfortunately messages So best text and questions subscribers different mini lessons options.com/blog C H A I M E K S T E I N.com/blogscribe mini lessons free webinars different topics options questions participants email remindering Fine. Yes. Lectures detailed. Quick question. Earnings. was expired in take not the company's earning dates. Okay. Okay. earnings dates in and got a call. And the idea is as I closer to earnings and is earnings. This is basically the question in the subject. So the company is listed of the US stock market earnings. Okay. numbers report numbers. But basically what is as the the English is the quarter expectations earnings reports but their earnings reports get read the company listed of the US stock market releasing the earnings announcing the earnings report earnings call investors kind of questions earnings reports the moves in their expected. expected as the next was the market expected as they forecast impacted the price in the stocks. This is earnings. The next commitments from the option. The stock of dollar option. This is a call option. The next is volatility. IV mind implied volatility. In the next free webinar standard deviation impacted by volatility free webinar Delta webinars.com the event the volatility mind the shock the expectation the expectation was doing in the market the guy was on a gross volatility and then the implied volatility is expect this is the implied volatility. Yes. As the implied volatility is expected implied volatility do expect the company and and and unknown one's The market anticipate volatility surprises. Okay. got increase in implied volatility implied volatility off the price and the options off. So earnings call option volatility as it gets closer to earnings is the shall the them. Number one, Fore dollar call is Billy When the stock is when the stock is ended optioned when the stock is optioned I don't know whatever so the point is The solution problem detail. determination earnings negative. So they do question implied volatility potentially potentially the fact the the solution The solution is basically a strangle mind expiration strike price. The call cost $1, the put cost $10 options contracted. So over the back end value risk. ctional risk. Number one, the implied volatility of earnings over the options premium. cost. So is under strike prices. Out of the money says the call 95. So this is a strangle out of the money call and out of the money put. Now implied volatility implied from volatility strategy. earnings announcement and most most of the time. Okay. Number one research in the past Same stock earnings back in today's specific stock in history increased increased implied volatility negative factors. So advance information lesson options.com/blocks freeisd Done for your will.