85% Profit Trading INTC Earning

85% Profit Trading INTC Earning

🐙 Get a 14-day free trial for the Predicting Alpha terminal: https://bit.ly/3gHLATv ðŸģ Follow me on Twitter: https://bit.ly/36wQrlt How I Trade Earnings (the theory):    â€Ē How To Trade Earnings For Beginners - Step...   In this video, I share how I traded INTC earnings, the strategy that I used and the result of the trade. I had sold a short strangle at the 23.5 put and 29.5 call on INTC with the closest expiration that expires after the earning announcement. I sold that short strangle collecting $0.95 credit, or $95 as 1 option contract represents 100 shares of the stock. I then bought back my short strangle the next day at the market opening, making $81 on the trade. This is due to the fact not only the stock didn't move much after its earnings (which is the goal when you sell a short strangle, you want the stock to stay within your put and call strikes), but also because the implied volatility dropped suddenly after earnings which is a common phenomenon. Let me know if you have any questions down below! ----------------------- DISCLAIMER: These videos are for entertainment purposes only. This is not meant to be financial advice. Please always do your due diligence and never stop learning. AFFILIATE DISCLOSURE: Some of the links in this video description are affiliate links, meaning, at no additional cost to you, I may earn a commission if you click through and make a purchase and/or opt-in.