MikeL 8:17 am on Thursday, June 7, 2018
Tags: UnbalancedDiagonal ( 32 )

@smasty160 Sue, would you hold…

Sue, would you hold any Aug/Sep/Oct #unbalanceddiagonal position over earnings, or close prior to earnings?

smasty 12:28 pm on Thursday, June 7, 2018

Hi Mike! It depends, but probably not. If I wanted an earnings-specific trade I would do something different. If I am comfortable with the company and the market, and maybe I’ve already collected some premium on rolls, then I might….with the caveat of selling in-the-money calls for earnings week so I have maximum downside protection. That’s why you saw me remove the trade on ADBE prior to earnings release.
But it is doable as a way of collecting the nice premium for earnings week. You can add some put protection via a correlated asset (like AMZN/XLY) for more protection w/o paying as high a rate as buying puts when IV is high for earnings.