Tag: short strangles

An Earnings Season Short Strangle in Verizon (VZ)


Earnings season gets into full swing next week with an array of companies due to report, including Tesla (TSLA), Netflix (NLFX) and a host of other, high-beta stocks. However, while most traders will be looking to trade the higher-beta stocks due to the heightened premium, my intent, as always, is to focus on the boring,… Read more »

Potential Starbucks (SBUX) Trade Using the Highest-Probability Options Strategy


Short Strangle Starbucks Statistically speaking, it doesn’t get much better than the short strangle. Many professionals claim it’s the ultimate options strategy. And there is no doubt it is the bread-and-butter options strategy among most traders that take a quantitative, or mathematical approach to trading options. A short strangle is a neutral, range-bound options strategy… Read more »

Top Earnings Options Plays for the Week (12/6– 12/10)


Even though earnings season has passed, there will always be an opportunity or two from week to week. Next week brings Costco (COST), Lululemon (LULU) and a few others. Costco will probably be my main focus, but there are certainly a few others that offer some interesting set-ups.  The Week Ahead Dave & Buster’s (PLAY)… Read more »

Top Earnings Options Plays for the Week (11/29– 12/3)


Top Earnings Options Plays for the Week (11/29– 12/3) It was another good week for earnings trades. I just keep chugging along, maintaining my mechanics, trade after trade, allowing the law of large numbers to lead the way. While earnings season has passed, there are always a few companies that report outside the normal window.… Read more »

Trade Idea: Potential 10.7% in HPQ Over 4 Days


For months I’ve been writing about short strangles and how they offer investors one of the highest-probability strategies on the market. If managed correctly, short strangles are an incredible strategy. But the capital required can be steep, so most investors shy away. Plus, the thought of being naked on both sides of a trade (call and put)… Read more »