Earning analysis Note

By Schaeffer

1. Step 1: analyse the big option flow
2. Step 2: Determine the Magnitude with Straddles
3. Step 3: Decide on Hedging or Leveraging Discover the direction of the trade by looking at the bid and ask prices, as well as analyzing the overall option chain to look for the potential types of trades being placed

4 things to look to decide the earning By Steven place

1. compare to the past action (average max movement and Avg final movement Vs Straddle)
2. fundie
3. current option premium (mkt risk or earning risk?)
4. option flow

Option hawk:

1. Check flow a few days before earning

Personal note:

• When option blow through the straddle price, it has good risk on reward to do a strangle at the end of the day. (by Steven place)
• To analyse earning, compare HV 10 Vs IV 30