Stocks & Commodities V. 27:6 (62): Explore Your Options by Tom Gentile

Stocks & Commodities V. 27:6 (62): Explore Your Options by Tom Gentile
Item# \V27\C06\114EYO.PDF
Availability: In Stock

Product Description

Explore Your Options by Tom Gentile


A stock I like has been trending higher, and I was considering a credit spread expiring in May. However, the earnings report is due May 7 and I canít determine whether this volatility rush will negatively affect my position... any advice for me?

You are correct, knowing the earnings reporting date when trading individual stocks can be very important. In addition, there is often a volatility rush ahead of earnings. In other words, the implied volatility (IV) of the options will begin to move higher prior to the earnings release. Why?

The market is very efficient when it comes to anticipating future volatility. When a stock is expected to make a big move, the option premiums become more expensive because big moves make it more likely that an option can move in-the-money by expiration.

*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at users can view the S&C Digital Edition in the subscriber's section on

Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order