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Options Playbook Radio

Welcome to Options Playbook Radio - the program where we break down cutting edge options strategies and explain how you can incorporate them into your own portfolio.

Jul 27, 2017

We are back in earnings season. Given the possibility for big moves, we will look at the skip strike butterfly with calls, which you can find on page 108 of The Options Playbook. This is always available, in on the Amazon Kindle edition.

In this episode:

  • What happens to implied volatiilty around earnings?
  • The dynamics of the trade
  • The more costly the underlying, the more costly the option
  • AMZN announces earnings on 7/27 after the close
  • What is the "expected move"?
  • Picking a close expiration
  • Selecting strikes
  • What is the maximum risk?
  • What is the break-even point?
  • What if we are completely wrong?
  • What is the best-case scenario?

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