Selling options before earnings really is the best way to trade these announcements...and I hope this video proved to you why! :) 🔥 START YOUR FREE 7 DAY TRIAL WITH MY DISCORD HERE 🔥 * Watch my video about the Discord here: czcams.com/video/eN8_RBknhjk/video.html * Sign up for your FREE trial here: launchpass.com/options-trading-with-scott/discord-member -------------------------------------------------- 🔥 GET UP TO 10 FREE STOCKS WITH MOOMOO 🔥 *** Use my link below to open a brokerage account and make an initial deposit to claim your rewards! *** Open a Moomoo brokerage account = 1 free stock Deposit $1 into your account = 5 extra free stocks (6 total) Deposit $100 into your account = 1 more free stock (7 total) Deposit $2,000 into your account = 3 more free stocks (10 total) LINK: j.moomoo.com/00iYIy
at around @4:10 you mention that there is a large IV expansion leading up to earnings and a large IV crush immediately after earnings, and yes the vol. chart shows those undulations. HOWEVER, the vertical axis values of that vol. chart are not displayed so we have no idea of the actual SCALE of those moves. For all I know, those up & down moves could represent relatively insignificant micro movements in IV but expansion of the vertical axis simply exaggerates them to make them, look significant. Please show the labeling on the vertical axis so that we can actually verify the nature of those IV undulations
Wonderful video but, What delta you sold both options at? Which was, more or less, the distance between price and your strikes? How would u protect if netflix went under or over ur strike?
I'm getting close to subscribing beyond your YT channel Scott 🤔. Any chance you could share the "Vol" setup/indicator you are utilizing for the highly liquid pre-earnings trades?
I'm glad that you've been enjoying my videos! And there's no risk with trying out the other courses and services that I offer...signing up with Skillshare using the links in my video descriptions will give you a 1-month free trial, and my discord also comes with a 7-day free trial...you can cancel anytime before the trials end and not pay a dime :) As for your question, I do have an older video that will show you exactly how to add the IV Rank and IV Percentile indicators! Check it out here: czcams.com/video/ZYmH1aRtzhQ/video.html
Why did you use the monthly expiration date cicle (about 30 days away)? I remember you have said that a shorter expiration date cicle is more effected by the volatility.
Yes you are correct...options expiring sooner have a greater sensitivity to implied volatility. However, given that Netflix has been so volatile around earnings in the past, I wanted to play this one on the safer side. So by trading further-dated contracts, I am giving up some implied volatility sensitivity, but I am also able to sell contracts further away from the current stock price while still collecting decent premium. Additionally, given that the IV for Netflix was so incredibly high, it really didn't matter at all that I traded the monthly contracts....the IV crush after earnings was so large that even these contracts fell in price by over 65% the next morning.
Selling options before earnings really is the best way to trade these announcements...and I hope this video proved to you why! :)
🔥 START YOUR FREE 7 DAY TRIAL WITH MY DISCORD HERE 🔥
* Watch my video about the Discord here: czcams.com/video/eN8_RBknhjk/video.html
* Sign up for your FREE trial here: launchpass.com/options-trading-with-scott/discord-member
--------------------------------------------------
🔥 GET UP TO 10 FREE STOCKS WITH MOOMOO 🔥
*** Use my link below to open a brokerage account and make an initial deposit to claim your rewards! ***
Open a Moomoo brokerage account = 1 free stock
Deposit $1 into your account = 5 extra free stocks (6 total)
Deposit $100 into your account = 1 more free stock (7 total)
Deposit $2,000 into your account = 3 more free stocks (10 total)
LINK: j.moomoo.com/00iYIy
great channel, Finally a logical options trader that follows the statistics and makes sense, SUBSCRIBED!
I'm glad you enjoyed the video and my trading style! Thanks so much for subscribing! :)
at around @4:10 you mention that there is a large IV expansion leading up to earnings and a large IV crush immediately after earnings, and yes the vol. chart shows those undulations. HOWEVER, the vertical axis values of that vol. chart are not displayed so we have no idea of the actual SCALE of those moves. For all I know, those up & down moves could represent relatively insignificant micro movements in IV but expansion of the vertical axis simply exaggerates them to make them, look significant.
Please show the labeling on the vertical axis so that we can actually verify the nature of those IV undulations
Wonderful video but, What delta you sold both options at? Which was, more or less, the distance between price and your strikes? How would u protect if netflix went under or over ur strike?
Well explained as always Scott. Thank you
Always happy to help! Thanks for watching, Kannan :)
I'm getting close to subscribing beyond your YT channel Scott 🤔. Any chance you could share the "Vol" setup/indicator you are utilizing for the highly liquid pre-earnings trades?
I'm glad that you've been enjoying my videos! And there's no risk with trying out the other courses and services that I offer...signing up with Skillshare using the links in my video descriptions will give you a 1-month free trial, and my discord also comes with a 7-day free trial...you can cancel anytime before the trials end and not pay a dime :)
As for your question, I do have an older video that will show you exactly how to add the IV Rank and IV Percentile indicators! Check it out here:
czcams.com/video/ZYmH1aRtzhQ/video.html
@@scottreesetradinginvesting7936 Thank you Scott. I appreciate the prompt response.
Why did you use the monthly expiration date cicle (about 30 days away)? I remember you have said that a shorter expiration date cicle is more effected by the volatility.
Yes you are correct...options expiring sooner have a greater sensitivity to implied volatility. However, given that Netflix has been so volatile around earnings in the past, I wanted to play this one on the safer side. So by trading further-dated contracts, I am giving up some implied volatility sensitivity, but I am also able to sell contracts further away from the current stock price while still collecting decent premium. Additionally, given that the IV for Netflix was so incredibly high, it really didn't matter at all that I traded the monthly contracts....the IV crush after earnings was so large that even these contracts fell in price by over 65% the next morning.
you have to buy it two weeks away