Disclaimer: learning options and trying to validate my understanding and thought process.
ACN has earnings around September end . Current IV for oct 4 is ~27%. $340 calls are ~$13. I am expecting IV to rise before earnings.
So buy calls now and sell before earnings.
What I am missing here?
ACN calls before next earnings
byu/Practical-Can-5185 inoptions
Posted by Practical-Can-5185
1 Comment
Iv for options post-event isn’t all that great. You are better of getting options for the 27th. Also, what do you think can happen to the underlying between now and when they report?
You can’t take advantage of IV if it moves against you. So you want to make a time frame that suites your strategy the best.
I find that i can take advantage of IV with an entry point of about a week prior to major event.
Be mindful that fed cuts rates mid September, inflation data comes out in two weeks and we get a major jobs number friday.