TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker and becoming a Supporting Member. For more info: Support TMC

Information+Discussion-Trading The Earnings Cycle UsingStraddles-TeslaPlusOtherStocks

Discussion in 'TSLA Investor Discussions' started by MitchJi, Aug 11, 2015.

  1. MitchJi

    MitchJi Active Member

    Jun 1, 2015
    Marin County, CA

    Brief excerpts from the book "The Volatility Edge In Options Trading" are quoted below:
    From Chapter 1 of the book, quoted for two reasons. Good examples of things to be careful of when selling calls, plus a clear example of IV and other indicators responding to insider trading:
    Chapter 7 - Trading The Earnings Cycle - Page 205
    (two categories are mentioned, I focus mostly on the first - increasing volatility during the days that precede the ER)
    Chapter 7 - Trading The Earnings Cycle - Pages 222-223
    I have three questions:
    1. How simple or difficult is this to implement (sounds pretty simple)?

    2. Any good candidates in addition to Tesla?

    3. I would consider something like a straddle of (for example 10 calls and puts) and if it is profitable, and either IV is substantially higher (IV responding to insider trading?) keep a few of the corresponding options (paid for from the profits). Seem like a good idea?

Share This Page