Tip for option trading earnings
– Always keep your strike price of your puts and calls within 10% of the stock price. If it is too far , you will be out if the money therefore making it a loss. Ex Stock X at 200. AT Most I would put my strike price within the range of 180 for puts and 200 for calls
-To minimize risk Buy an option that would expire 2 weeks or so after earnings so in the event the stock does not go your way, you can give it time to rebound. These options are safer but tend to be more expensive.
Ex my Mck feb 22 calls earnings did my go away but now it’s rebounding.
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