Option Block 660: NFLX Kicks off Earnings Season

Published: Oct. 17, 2017, 8:29 p.m.

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Trading Block: Earnings!

  • Netflix, ATM straddle - $15.30, approx. 7.5%
  • Tuesday - IBM
  • Wednesday - Alcoa
  • Thursday - Verizon, PayPal, Etrade
  • Friday - Honeywell, P&G

Odd Block: Size upside love in Comcast Corp. (CMCSA), size roll in Alerian MLP (AMLP) and funky ratio vertical/stupid in Himax Technologies, Inc. (HIMX).

Mail Block: Options question of the week

Earnings Season is almost upon us! What's your favorite way to trade earnings using #Options?

  • Sell Strad./Fly/Condor
  • Buy Strad./Fly/Condor
  • Sell Puts/Put Spreads
  • Buy Calls/ Call Spreads

Listener questions and comments:

  • Comment from PeterPan @pierhk - ATM straddle...Buy with ATR>2
  • Comment from Trader J Rae @traderjrae - Usually a collar or protective put. Everything else held over earnings is a gamble, not a trade.

Another options question of the week:

Earnings Season is here! Which name do you plan to trade most actively this cycle?

  • Tesla - $TSLA
  • Amazon - $AMZN
  • Apple - $AAPL
  • Alphabet - $GOOGL
  • Comment from Trade With Bulls LLC - $INTC

Still more questions:

  • Question from McGillIMontreal: Had a question regarding $GIL and two large 3K 30 strike puts on 10/9 with earnings 11/2. Can you guys explain any rationale around that?
  • Question from Ascentaa - What can happen to the current options being held of KITE which is acquired by GILD and is being delisted

Around the Block: GS tomorrow before the bell, ATM straddle - $6.10, approx. 2.5%.

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