SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The ultimate play:STRADDLES on earnings announcements.
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Jeng Chiu who wrote (18)7/5/1996 11:45:00 AM
From: farouk a. hassieb   of 140
 
Jeng,

I have purchased some IOMG Aug30 calls this morning when IOMG dipped to the 26.25 level. If I see it drop to this price or below again I will buy some more. I will look to buy the IOMG puts on the next advance, hopefully I can pick up the Aug30 puts if IOMG goes above 30. If it doesn't, I will pick them up at the nearest strike. I expect the stock to trade in between 26-28 for the next week or so to be followed by a pre-earnings advance. I am also planning to pick up a July straddle the day before earnings when premiums are cheaper.

I am looking to establish my straddle on ASND today. The stock has been trading in a range of 52-57, to I will look to pick up the July or Aug 55 puts when the stock is trading above 57, and to buy the July or Aug 55 calls when it's below 55. Earnings are due out soon, and the stock is looking strong today so I may have to pick up the 60 calls. I do not like to buy in-the-money calls or puts when establishing straddles. I think it is better to go on-the-money or to the next available strike. I must stress that this strategy is somewhat difficult in the sense I am trying to precisely time the market. It may be easier to buy the straddle with a 55 strike when ASND is trading at or near 55 when the calls and puts will be trading at or near par.
What options positions do you currently hold?
Regards,
FH
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News