Earnings season presents a significant amount of opportunity for those who appreciate the opportunity to speculate on the outcome of a stock’s price after the announcement. In many cases, such as with bio-tech companies, stocks can move in a drastic manner. In the case of technology and a significant number of S&P 500 companies, the movement is typically not quite as monumental. Options Trading Strategies exist for those of you who are comfortable with absorbing the risks involved in the particular strategy. There are numerous strategies available, but choosing the correct one to meet your risk reward requirements is not always easy. One should always take into account the liquidity of the options that you are trading in addition to the Implied and Historical Volatility, the Implied Volatility Skew and the historical movement of the stock post-earnings.
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