On Wednesday, I posted about SNOW earnings, telling people on /r/wallstreetbets to get a put spread. The exact play was to buy the SNOW 8/23 130p and sell the 8/23 120p. This netted 3x gains.
Then I got banned. So on Thursday, I posted about WDAY earnings, telling people on /r/wallstreetbetsOGs to get a call spread. Buying the WDAY 8/23 242.50c and selling the 8/23 255c. This netted 3x gains again.
Feel free to read the two posts above. Next week we have NVDA earnings. I just discovered this sub, so I wanted to see what other people's strategies for earnings are. If you looked at these posts, you can probably tell that I focus more on fundamentals when it comes to earnings, and pour in hours of research in order to try to come to a conclusion.
The reason why I get spreads instead of straight calls or puts is because the IV reduced. I also set the further OTM strike price at the average move the stock makes with earnings, by looking at historical data. When it comes to earnings, what do you guys try?
WDAY Call spread with Earnings
byu/GrowYourConscious inoptions
Posted by GrowYourConscious
1 Comment
As a new trader with a small account, my strategy is to just avoid playing them. Just not worth the risk in my situation.
If I were to, I would do similar to yourself with spreads. I play spreads usually anyway as it gives me some protection if things go south. I’d also be playing ITM/ATM long leg and the short leg at the expected move based on IV and nearby price levels, which is what I generally do on my swing trades.
In the future when I’ve gained a lot of experience, I wouldn’t be against doing calendars on earnings, but really atm my biggest fear is getting assigned or pinned on something I can’t afford so I’m careful with my short legs