As we enter the end of earnings season, there are still a few big names left to report, including Priceline, PCLN. This is an interesting opportunity for a skip-strike butterfly. You can find more on page 108 of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.
- Earnings + expiration + implied volatility = interesting situation
- Goal: do the trade for a net credit
- PLCN announces earnings on 2/27
- What is the expected move?
- What is the implied volatility?
- Selecting the strikes
- Remember commissions!
- What's the risk? Reward?
- When to get out?
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