#Earnings One of our favorite earnings trades is back. After a pretty deep dip, premium is decent, although bid/ask spreads are wide and OI is low. So beware.

Sold $AZO Dec 8th 615/780 strangle for 4.50. It took awhile to get filled. Put in an order for a second one at 4.75.

AZO’s ONE-day moves over last 12 quarters: Biggest UP move: 5.8%, Biggest DOWN move: -11.8%, Average move: 2.8%.
It’s FIVE-day moves are actually less extreme… it seems to retrace any large one-day moves over the following days: Biggest UP move: 4.1%, Biggest DOWN move: -6.7%, Average move: 2.5%.

My strikes are +11.4% and -12.1% OTM.