Investors timing Apple on the day of its earnings release should follow the same strategy: Exploit volatility and hedge a current position, or enter a new position with the advantage of offsetting the risk of others as your own for a price. No different than the insurance model, but at a scale you're comfortable with.
OK, by now you're likely asking what the trade is, and I am not going to disappoint you. Early in the trading day, I will look to sell puts with a strike price of $500 to hold through earnings.
At the time of publication, the author held no positions in any of the stocks mentioned.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV