From Nasdaq: 2024-04-15 08:33:50

Earnings season heats up this week with big names reporting like Netflix (NFLX), Bank of America (BAC), Goldman Sachs (GS) and UnitedHealth Group (UNH). Before earnings, implied volatility is high, but usually drops afterward. Expected ranges for stocks are calculated based on at-the-money put and call options prices after earnings dates.

Option traders can structure trades using expected moves for earnings plays. Risk-defined strategies like bear call spreads, bull put spreads, and iron condors can be utilized. Having a small position size is crucial, with no more than a 1-3% impact on the portfolio if a trade goes awry.

Stock Screener filters stocks based on call volume, market cap, and IV percentile to find high implied volatility candidates. Unusual options activity was seen on stocks like META, AAPL, JPM, OXY, and BMY last week, with risks highlighted for investors. Always consult a financial advisor before making investment decisions.



Read more at Nasdaq: Option Volatility And Earnings Report For April 15 – 19