FCX announces earnings later this month; seems like a good time for a calendar spread.
Listen to Options Playbook Radio 190: FCX Long Calendar Spread
Welcome to 2018! Let’s jump right into strategies, specifically around earnings. In this episode, we are looking at a long calendar spread with puts in FCX. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.
Specifically:
- Why are we picking FCX?
- When does FCX announce earnings?
- What is the implied volatility?
- Why are we expecting a major announcement?
- Why pick a calendar around earnings?
- Defining a calendar spread
- Remember, if you do this, you’re long implied volatility
- Caveats and other considerations
- Setting up the trade
- What is the cost? Risk?
- What do we want to happen?
Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.