C reported today, I didn't look until mid-day. The stock gapped down and rebounded strongly closing + $2.24. A straddle would have made money if you knew to exit the puts at the open.
Before earnings ... C @ 56.69 ... $55 monthly call @ $3.25 ... $57.50 put @ $3.40 Straddle = $6.65 Afterearnings ... C @ 58.93 ... $55 monthly call @ $4.35 ... $57.50 put @ $1.30 Straddle = $5.65
So a marginal straddle if you exit right and cost of a monthly straddle dropped by $1.49 after earnings. (price for in the money call & put)
Before earnings ... C @ 56.69 ... $56.50 WEEKLY call @ $1.64 ... $57.00 put @ $1.72 Straddle = $3.36 After earnings ... C @ 58.93 ... $56.50 Weekly call @ $2.49 ... $57.50 put @ $.22 Straddle = $2.71
Still a marginal straddle if you exit right and cost of Weekly straddle dropped by $1.78 after earnings. (price for in the money call & put)
Warning - All posts are JFDAO (Just Fred's Dumb A$$ Opinion)
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.