Earnings start next month, so let’s look at a long calendar spread to “control” IV in AAPL.
Today we are going to take a look at long calendar spread with calls on a little known company called Apple. This is on page 90 of The Options Playbook, on OptionsPlaybook.com, or on the Amazon Kindle.
- What can you do going into earnings?
- How to “control” implied volatility around earnings
- AAPL indicates that it will announce earnings on April 25
- What are the implied volatilities for the at-the-money calls expiring around that date?
- Setting up the trade: picking strikes and expirations
- What is the net cost for the spread?
- What do we want to happen?
- Plus, reviewing the GPS butterfly and the ABT straddle
Do you have questions that you would like answered on the show? Send them to Brian at [email protected].