2/n
A thread.
Earnings Trades Simplified.
Earnings announcements are public announcements that display a company’s earnings, or lack thereof. As the earnings announcement gets closer, implied volatility tends to increase. After earnings are announced,...
1/n
2/n
Earnings trades are not for everyone, as they involve high amounts of uncertainty and random movements.
3/n
-Increase number of occurrences, many trades available so increases of our probability of profit.
-High IV opportunities
-Short term Binary event leading to drastic volatility crush.
4/n
1. Expected Move
2. When to place trade
3. Historical Moves
4. Strategies based on market conditions
5/n
Normally calculated by IV, stock price, expected move period(as no. of days) by formula
Price * IV * SQRT(days/365)
Market Makers expected move -
ATM Straddle * 0.85* =(both the sides from strike)
Both have some differences.
6/n
ATM (1140) Straddle = Rs.100 approx.
Days to expiration = 15 (29 October)
Stock Price - 1140
IV = 50%
Expected move till expiry - Rs.115 Either way from spot
Market Maker move - Rs.85 Either way from spot.
7/n
If Earnings is overnight, say tomorrow, place the order at end of the day today for better delta position.
If Earnings is during market hours, at the start of the day as the timing of the earnings can be easily switched during the course of the day.
8/n
Did the underlying in which the trade is taken historically overstated IVs are understated, in case of INFY case shown below it has understated 5/7 times in last 7 quarters after earnings.
Yellow Dotted lines are earnings days.
9/n
Only basic ones. Will explain three of them here.
1) Iron Condor - Beginner Strategy, can be used for any underlying. Basic Setup, example on INFY. Explained Iron Condor in y previous threads.
10/n
Can be used for large underlying or IV percentile > 90. Better Risk Reward than Iron Condor. Basic Setup as shown below. Sell closer strikes than Iron condor.
11/n
More from Trading
There is co-ordination across the far right in Ireland now to stir both left and right in the hopes of creating a race war. Think critically! Fascists see the tragic killing of #georgenkencho, the grief of his community and pending investigation as a flashpoint for action.
Across Telegram, Twitter and Facebook disinformation is being peddled on the back of these tragic events. From false photographs to the tactics ofwhite supremacy, the far right is clumsily trying to drive hate against minority groups and figureheads.
Be aware, the images the #farright are sharing in the hopes of starting a race war, are not of the SPAR employee that was punched. They\u2019re older photos of a Everton fan. Be aware of the information you\u2019re sharing and that it may be false. Always #factcheck #GeorgeNkencho pic.twitter.com/4c9w4CMk5h
— antifa.drone (@antifa_drone) December 31, 2020
Declan Ganley’s Burkean group and the incel wing of National Party (Gearóid Murphy, Mick O’Keeffe & Co.) as well as all the usuals are concerted in their efforts to demonstrate their white supremacist cred. The quiet parts are today being said out loud.
There is a concerted effort in far-right Telegram groups to try and incite violence on street by targetting people for racist online abuse following the killing of George Nkencho
— Mark Malone (@soundmigration) January 1, 2021
This follows on and is part of a misinformation campaign to polarise communities at this time.
The best thing you can do is challenge disinformation and report posts where engagement isn’t appropriate. Many of these are blatantly racist posts designed to drive recruitment to NP and other Nationalist groups. By all means protest but stay safe.
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