Conservative option strategies, what did you buy or sell today?

[fenders53]

(04-12-2020, 06:41 AM)NilesMike Wrote: Newest strategy goes in the toolbox on Tuesday when JNJ reports earnings.

Strategy essentials: selling an Iron Condor on lower beta (<1.0) stocks after earnings day closes. Short strikes are 5% above and below closing price. The IV will continue to collapse after earnings come out. No adjustments, hold to expiration unless like 90% of max comes out very quickly for some reason.

Earnings come out on a Mon or Tues, expiration chosen will be that same Fri. W,TH, Fri earnings will use the next Friday expiration.

All stocks will be lower beta, higher prices with weekly options. Risk is only to one side.

Studied it enough, now some real world experience with these.

Let us know how it goes.  

Earnings will be interesting this quarter and next.  Companies will pull guidance but they won't get by with complete silence.  They have enough information to paint a near-term picture.  I am very curious to see how the market processes horrible numbers, the possibility of more Div cuts, and effects of taking government grants/loans.  And of course a few positive earnings surprises as well.