Earnings Plays

TraderC
Newbie

Posts: 15

Earnings Plays

« on: April 30, 2007, 04:12:48 PM »

I feel like a chump for having missed out on earnings plays this quarter. I've been busy with my new daytrading gig, but this past quarter had made me wish I had done my homework. I had been used to finding straddles/strangles on low-volatility stocks from a few weeks before earnings which makes me analyze time decay vs volatility and hasn't always worked out. But I've noticed that a lot of people speculate on the direction and play it a day before announcement on closely expiring options. I think I need to read that Zack's method to aid my knowledge.

How far out do you play earnings on credit plays?


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optionpundit
OptionPundit
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Posts: 4462

Re: Earnings Plays

« Reply #1 on: April 30, 2007, 06:50:37 PM »

Coulda, woulda, shoulda! Which Zacks method are you referrring to? Ratings or something else?


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TraderC
Newbie

Posts: 15

Re: Earnings Plays

« Reply #2 on: May 01, 2007, 12:59:42 PM »

I've been using other methods for now based on historical action during earnings, but I don't think that's as consistent as I'd like.

I'm not familiar with Zack's methods yet, so I will be taking up on your book recommendation and getting that book! I liked what you wrote about earnings revisions up until earnings as it did well for you for AAPL.


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optionpundit
OptionPundit
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Re: Earnings Plays

« Reply #3 on: May 02, 2007, 12:36:05 AM »

Yeah, that's the power of being ahead. But Pls do keep in mind though that this is only one of the few factors that drives stocks nuts. There are other factors too i.e. Margin, that's very trickly to find a data on. In any case, earning and revenue determines quite a lot of movements.


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