Entries by Dan Sheridan

Options Safari: GLD Bullish Butterfly and an SPY Long Put

Dan’s two shows for CBOE TV Options Safari this week are: GLD Bullish Butterfly SPY Long Put Download the PowerPoint Slides – Enter your email address below Email Submitting this form subscribes you to our mailing list of option trading tips, advice and more! You can unsubscribe anytime. And please see our options trading for beginners page.

Options Safari: AMZN Bullish Butterfly, AAPL Iron Condor and FB Look Back

Dan’s three shows for CBOE TV Options Safari this week and next week are: **NOTE** CBOE had a technical glitch so Dan had to re-record these shows on 7/25. AAPL’s earnings came out last night so Dan added an IBM trade. AAPL Iron Condor for Earnings (Today!) AMZN Bullish Butterfly for Earnings (In 2 Days!) IBM Double Diagonal FB Short Put from June – Look Back Show And please see our options trading strategies for beginners page.

Pre-earnings Calendar idea in AAPL

This strategy can be employed in many vehicles, will use AAPL as an example today. AAPL is at $604 as I write this. Here is my idea Buy 1 August 605 call and sell 1 July 605 call (about 9 days from option expiration). The spread is going for around $15.60 ($1560 for 1 spread, expensive because of high price of AAPL). This idea can be used in cheaper stocks. It’s the same principle. The option volatility is around 33 for August option and 26 for July option. Why the disparity?  Earnings will be reported in AAPL after expiration of July options so July options won’t be affected and consequently will trade lower. August options will be front and center when earnings arrive and so the option volatility is higher and will continue to climb because AAPL can really move during earnings. What does this mean to me as a retail options trader?  It means one of the two foes you face as a calendar trader, price and implied volatility, will probably not be a foe during the length of the trade. Option Volatility risk (also call implied volatility) will be minimal at best, in my opinion, because August option volatility will stay pumped […]