Dissecting An Earnings Trade by James Leahy
Option trades are called “earnings trades” when they attempt to profit from stock price moves following the release of a company’s quarterly earnings. This article will construct and dissect a recent Nvidia earnings trade.
Dissecting is defined as the process of methodically analyzing something in minute detail. In this article, I’ll examine the process of setting up a trade before earnings and then dissect it through the next day, after earnings have been released and close the trade ...