From Theory To Practice - April 20, 2021 - Taking Advantage of Volatility Crush from Earnings

published 3 weeks ago by tastytrade, Inc.

With earnings season getting into full swing, we wanted to get into NFLX earnings today and CMG earnings tomorrow. Normally, we like to wait until the day of earnings to put on any new trades (so we can best take advantage of any volatility crush), but with Core Strategies with Kai tomorrow, we won’t be in the portfolio. As a result, we wanted to work up a CMG strategy today. Specifically, for NFLX earnings we look at a Short Put Spread, and for CMG earnings we look at an at-the-money Long Put Spread.

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