options on earnings

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MCWP2003
Apr 24, 2025 08:46 PM 0 Answers
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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

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