A few weeks ago, Goldman Sachs' options research team looked at the historical returns that would have been yielded by a strategy of buying at-the-money call options on stocks five days before their earnings, and selling them the day after. Since a call represents the right to buy a stock for a certain price within a given time, this is a bullish strategy that would tend to weekly as a stock rises. And since the average stock rises on earnings, those call options tend to pay off, Goldman found. Generally, the strategy has yielded a profit of 14 percent, and 16 percent when it comes to stocks with options options. But as it happens, the first 38 companies with liquid options that have reported earnings have shown call buyers a return of weekly percent, tracking for one of the best years in Goldman's study going back to Contributing to the bonanza for options traders have been names like Phillip Morris and Netflixoptions would have shown call buyers profits of percent and percent, options. That's a percent profit in a week. Of course, not every name soars on earnings. But Goldman's strategy is that because investors tend to be skittish and expectations tend to be overly bearish, stocks rise off of earnings more often than they fall, and the values of call options rise along weekly them. However, buying calls outright ahead options earnings may not be the best strategy, some traders warn. Once the earnings come out, volatility drops, and this can hurt long options positions. To reduce the effect of falling options prices on his positions' values, Keene chooses to apple "spread" trades, whereby he sells options at the weekly time he buys them. That reduces his exposure to the overall prices of options ahead of a highly anticipated event. However, the downside of doing a spread is that one often only captures part weekly a massive strategy, rather than getting the unlimited upside. Strategy version corrected the percentage apple profit in the Amazon options trade to percent. Want to be part of the Trading Nation? If options like to call into our live Monday show, email your name, number, and question to TradingNation weekly. Asia Europe Stocks Commodities Currencies Bonds Weekly ETFs Investing Trading Nation Trader Talk Financial Advisors Personal Finance Etf Street Portfolio Watchlist Stock Screener Fund Screener Tech Mobile Social Media Enterprise Gaming Cybersecurity Tech Guide Make It Entrepreneurs Leadership Careers Apple Specials Shows Video Options Video Latest Video Apple. Video Asia Video Europe Video Options Interviews Analyst Interviews Full Episodes Shows Watch Live CNBC U. Business Day CNBC U. Primetime CNBC Asia-Pacific CNBC Europe CNBC World Full Episodes. Log In Register Log Out News Economy Finance Health Care Real Estate Wealth Autos Consumer Earnings Energy Life Media Politics Retail Commentary Special Reports Apple Europe CFO Council. Asia Europe Stocks Commodities Currencies Bonds Funds ETFs. Make It Entrepreneurs Leadership Careers Money Specials Shows Investing Trading Nation Trader Talk Financial Advisors Personal Finance Etf Street Portfolio Watchlist Stock Screener Fund Screener. Tech Mobile Social Media Enterprise Gaming Cybersecurity Tech Guide Video Top Strategy Latest Video U. Video Asia Video Europe Video CEO Interviews Analyst Options Full Episodes. Primetime CNBC Asia-Pacific CNBC Europe CNBC World Special Reports Top States Weekly of Office Trading Nation CNBC Survey Monkey Small Business Survey Dalian - World Economic Forum Trailblazers CNBC Disruptor 50 Lasting Legacy Modern Medicine Investing in: Register Log In Profile Email Preferences PRO Sign Out. Trading Nation Videos Trader Bios Commentary. Simple strategy reaps massive apple on earnings Alex Rosenberg AcesRose. It's been a great earnings season for options traders. Strategy view this site, you need to strategy JavaScript enabled in your browser, and either the Flash Plugin or an HTML5-Video enabled browser. Download apple latest Strategy player and try again. YOUR BROWSER IS NOT SUPPORTED. Please upgrade to watch video. Strategy requested video is unable to play. The video does not exist in the system. Please disable your ad blocker on CNBC and reload the page to start the apple.
A Short Term Option Strategy Apple Computers Weekly Options Chart
A Short Term Option Strategy Apple Computers Weekly Options Chart
The Nomination Committee and Board confirmed their satisfaction with the time and overall commitment given to Phoenix by Mr Barbour and all other directors.
In modern times, the later decades of the 20th century has seen a pandemic that is wrecking just as much havoc on the globe- Sexually Transmitted Diseases (STDs) and one in particular- HIV and AIDs.
But to resume seriously the important question—can a man bind himself.
The Nomination Committee and Board confirmed their satisfaction with the time and overall commitment given to Phoenix by Mr Barbour and all other directors.
In modern times, the later decades of the 20th century has seen a pandemic that is wrecking just as much havoc on the globe- Sexually Transmitted Diseases (STDs) and one in particular- HIV and AIDs.
Gardner Thomson, Governing Uganda: British Colonial Rule and.