HD reports earnings soon. How would you put on a backspread around the event?
Listen to Options Playbook Radio 233: HD Straddle into Earnings
HD is announcing earnings soon. Let’s look at how to set up a straddle to cap risk.You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.
Specifically:
- What’s happened since last week?
- What did we learn from the NVDA backspread from last time?
- What happened to the one without earnings?
- What happened to the one that contained earnings?
- Let’s take a look at Home Depot
- Earnings are coming up
- Setting up the trade
- We know the max risk and max upside
- How many contracts should we do?
- What is our rationale?
- What’s the goal?
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.