options on earnings
I heard you mention a couple of times that you buys call prior to earnings on stocks that have a good track record of earnings beats. Are you buying ATM or OTM ? Are you buying 70 delta a few months out. Just curious. Have done the 70 Deltas a few months out on APP before earnings. Appreciate all you do and would love your words of wisdom. I will make this private because some people not knowledgeable enough to trade these strategies .
This is a practice I only use for stocks that I have confidence in their business models and earnings power. Using options allows me to own a stock into earnings and limit my losses if I am wrong.
I always buy out of the money. For instance last week I bought HOOD May 16 expiry $50 calls... They rallied last week into the print and that allowed me to take some profits and leave some on the table for earnings next week. The stock is still below $50 but the cal options appreciated greatly.
I have not trade APP options although the stock usually moves quite a bit on the earnings reports.
There are quite a few earnings reports that interest me this week including SPOT HOOD and RDDT.... they all moved nicely last week though.
Good Luck!
Marty