Each quarter we get the barrage of earnings announcements and go through all the earnings figures of each company. Earnings announcements can cause wide swings in stock prices. Positive earnings events can send a stock into a gap up in price and conversely negative or disappointing earnings can result in a stock price sell off. The question then can be asked, “Is there a way to take advantage of these swings in stock price as a result of an earnings announcement?” The advent of weekly options has made it easier to play earnings announcements. Options have a time value depending on how much time there is to expiration of the option. By using very short time frames for option speculation, this time value can be made very small. Since we know when earnings will be announced and the price reaction to the announcement happens over a very short time, weekly…
Tag: weekly options
Weekly Options Crash Course for Options Expirations
When the weeklies were initially offered on standard stocks, you would have only the next week out option. The new option would be released on Thursday morning prior the current weekly option expiring on Friday.
3 Quick Tips to Find Weekly Naked Put Options on PowerOptions
When I create a Search for Weekly options I start by: Click ‘Clear These Settings’. This will empty all the filter settings. Select ‘All Weeklies’ as your Options Expiration Time Frame. In the ‘Days to Expiration’ filter field enter a range of ‘2’ to ‘9’. This will filter out the options that have 1 day left to expiration but include the ones that expire 8 days away and will work for any day that you run your search. Enter in basic criteria for premium and return. Examples (not suggestions 🙂 ): Option Bid 0.15 to ____ (or your preference) % Naked Yield 0.5 to ___ % Out of Money 0.5 to ___ (or 1 to blank) Earnings Date – Not Between Now and Expiration Remember to keep your search criteria simple and basic at first when looking for weekly options. Once you submit that search you should see your desired…