Preview Mode Links will not work in preview mode

The Options Insider Radio Network

The Options Insider Radio Network is the premier audio destination for options traders. Our network feed provides access to a vast array of popular programs including The Option Block, Options Boot Camp, The Advisors Option, This Week in Futures Options, Volatility Views, Options Insider Radio and much more. Join the thousands around the globe who turn to The Options Insider Radio Network for options information, analysis and education.

Jul 28, 2016

Tis the season...earnings season. Instead of avoiding earnings, we are jumping right in, and are going to do so with a long butterfly with calls on GOOG. If you want to follow along with the book, you can find this on page 102.

Today, Brian covers:

  • A review of last time, including a mistake we made with the math
  • GOOG announces earnings after the close on July 28
  • Setting up a butterfly to capture earnings numbers
  • What is the most at-the-money straddle in the nearest-term expiration?
  • Why do we look at this straddle number?
  • What is the outlook?
  • Setting up the butterfly
  • What kind of move is the market expecting?
  • What is our maximum risk? Reward?
  • Choosing the 9-day versus the 2-day expiration