Sep 27, 2018
Costco (COST) has earnings coming up next week. We're going to do a backspread with puts, or a ratio volatility spread. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.
Specifically:
- A review of last week
- COST will announce earnings on 10/4
- What does the chart say?
- Let's do a backspread with puts
- What's the expected move?
- What's our take?
- Selecting the expiration and strikes
- What if we're wrong?
- What if we're right?
- What is the maxium risk? Reward?
- What happens the farther you go out in time?
- Does it work for every underlying?
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.