Top Earnings Options Plays for the Week (9/6 – 9/10)

top-earnings-options-plays-september-6-to-10-2021

Top Earnings Options Plays for the Week (9/6 – 9/10)

 The Week Ahead

Earnings season is mostly over. But there are always a few companies that report outside of the standard earnings window. Here are six companies that I think could offer some interesting trades next week.

Below you will find the implied volatility (IV), IV rank, IV percentile, average past price movements around earnings, expected move (implied move) and a few other key items to help you with any potential trades.

I use the following list as a guide for any potential earnings season trades. If you have any questions on the information provided below don’t hesitate to email me or ask in the comment section below. And don’t forget to sign up for my Free Weekly Newsletter for weekly education, research and trade ideas.

top-earnings-options-plays-September-6-to-10-2021

Here are a few other top earnings options plays for next week (9/6 to 9/10).

Earnings-options-plays-september-7-10-2021

Courtesy of Slope of Hope

Due to the uncertainty around earnings announcements, both speculators and hedgers create a huge demand for options around a company’s earnings announcement. This increase in demand for the options for that stock increases the implied volatility, which ultimately increases the price of the options.

Basically, options prices are inflated around earnings announcements, and as sellers of options our goal is to take advantage of these price discrepancies.

We can always create a trade with a nice probability of success using a variety of options selling strategies. At the top of the food chain would be the undefined risk options strategy known as the short strangle. Of course, if you wish to use a risk-defined trade, check out the price of an iron condor at various strike widths. I use short strangles outside of the expected move and with a probability of success typically above 80%.

The reason I go outside of the expected move or range is because we know through extensive research that 80% of stocks trade within their expected move immediately following earnings.

Again, if you have any questions, please feel free to email me or post your question in the comments section below.

And don’t forget to sign up for my Free Weekly Newsletter for weekly education, research and trade ideas.

 

2 comments on “Top Earnings Options Plays for the Week (9/6 – 9/10)

  1. Michal on

    I wrote mail to you at support@crowderoptions.com so I publish it on your webpage

    Hello Andy
    My name is Michal
    At the beginning sorry for your my English. I’m not from US and I’m Poland and I always prefer learn a maths that any other language.

    I found your web page and I’m starting learning options. At last notes at https://www.crowderoptions.com/top-earnings-options-plays-for-the-week-9-6-9-10/
    I published 6 stocks and one of it is Oracle (ORCL)

    You wrote: ” I use short strangles outside of the expected move and with a probability of success typically above 80%”

    I will be something as attached print screen or different and could you give example of it?

    Best Regards
    Michał

    Reply
    • Andy Crowder on

      Michal,

      Of course I can give you a few examples of different strategies I use in these situations. I’ll include both links here and if you have further questions you can ask in the comments section and I will be more than happy to answer. Here is an article of mine on short strangles and here is another on iron condors which might be a better alternative for someone new to this type of trading due to its inherent risk-defined nature…iron condors.
      .

      Reply

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