During earnings season, we generally have an expansion in volatility in individual stocks making way for good trading opportunity.
Typically, we use the closest expiration to place antrade. What happens if we sell further out?
- AMZN, JPM, IBM
- 2013 - Present
- Sold 16 Strangles
- Weekly Expirations
- Front Week, 2 Weeks, 3 Weeks
- Sold the Day Before Earnings
- Covered the Day After
- Recorded Average P/L, (Risk)
For these underlyings, it seems that adding duration slightly improves the Average P/L while lowering the Standard Deviation.
Tune in as Tom and Tony interpret the results for the current earnings season!