Options Boot Camp

Options Drills: How to play earnings through options plays. There are two basic approaches to earnings trading: long premium and short premium. Long Premium - PROS: Advantageous because you essentially receive free or dramatically reduced gamma with little decay in the weeks leading up to earnings. CONS: All of that decay comes out, and more, after the announcement. Also, much of the movement in the underlying occurs after-hours and is unavailable to options traders. Short Premium - PROS: Higher probability of success, need a substantial move post-earnings to lose money. CONS: Doesn't collect decay until earnings event, potentially losses can be catastrophic can make it hard to sleep at night. How to analyze Greeks during earnings week. Different strategies to employ during earnings: Calendars, Straddles, Strangles & Butterflies Mail Call: Our drill Sergeants show their softer side. Question from Stock Doctor: Why can't I trade options after hours? I'm missing most of the stock movement if I wait until