By Lawrence G. McMillan
This week’s earnings calendar is even heavier than last week’s, setting up plenty of potential opportunities for pre-earnings straddle buys. Many stocks are showing the classic saw-toothed implied volatility patterns (like AMZN above), which often precede strong earnings-related moves. Below is a table of the candidates:
To maximize your chances of success, be sure to:
- Only buy straddles if the price is below our recommended threshold.
- For companies reporting after the close, purchase straddles as close to the closing bell as possible.
- For companies reporting before the open, make your purchase just before the prior trading day’s close.
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