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Strategies & Market Trends : Option Strategies

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To: Bridge Player who wrote (1883)8/1/2017 6:54:48 PM
From: Bridge Player   of 1892
 
One of the things I have had some slight success with is trading calendar spreads on stocks with weekly options, that are about to announce earnings.

If you like a stock that has weeklies and expect a longer-term rise, the week of earnings announcements will often find a sweet premium in the options that expire Friday of that week.

You can often buy the following week call, slightly out of the money, at very little premium over the one due to expire on any particular Friday, and then sell the 1-week shorter term.

This works especially well if you already own the stock and don't mind losing it if it gets called. After all, it would be a nice profit if called and you could then write short puts at the same strike, right?

Right now I like the RIG 9s, due to report on 8/2, and the SWN 6s, due to report on 8/3. Had some success today with the FEYE 16 1/2s, 8/4 and 8/11.
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