Earnings Strategies
Trading Around EarningsEarnings season can provide ample profit opportunities, but using the wrong trading strategy can just as easily spell disaster.
For most traders seeking to profit during earnings season, there are two basic schools of thought:
Take advantage of potentially higher implied volatility…
Backtesting Short Butterflies
Jeff Augen, author of The Volatility Edge in Options Trading, recently published a strategy on trading weekly short butterflies. He discusses the following strategies for trading weekly short butterflies:
Sell an At-The-Money Butterfly on the Friday prior to expiration
Close the trade at…
Backtesting Iron Condors
Tasty Trade recently published a video episode on trading iron condors. In their episode, they recommended the following strategies for trading an Iron Condor:
Sell the 16 delta call option & put option
Buy the 5 delta call option &…
Backtesting Strangles
Tasty Trade recently published a video episode on trading strangles. In their episode, they recommended the following strategies for trading a strangle:
Sell the expiration closest to 45 days to expiration (DTE).
Compare & contrast the following:
Sell the 30…
