From Theory To Practice - July 20, 2021 - How to Hedge an Earnings Trade

published 4 days ago by tastytrade, Inc.

Earnings are always great for us at tastytrade because they give us an opportunity to boost our occurrences and sell high volatility. Still, these events can often lead to explosive moves in one direction. As a result, it can be worthwhile to consider putting a hedge in place for an earnings-related position. With NFLX reporting earnings today after the close, we show how to use a weekly Butterfly Spread to do exactly that.

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