Apr 5, 2018
We are back in the saddle discussing options strategies. As we are a few days away from earnings, let's look at something that is not driven by earnings. While we're waiting for volatility to slow down, let's look at a short-term butterfly in UNH. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, or on the Amazon Kindle edition.
Specifically:
- UNH announces earnings on 4/16
- Doing a very short-term butterfly to not contain earnings
- What are we hoping to happen?
- What is the implied volatility?
- Selecting strikes
- Setting up the trade
- What is the maximum risk? Reward?
- What about time decay?
Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.