Thursday, January 22, 2009

Earnings Season: Straddles for the Next Two days

With earnings season just started and big surprises expected daily, straddles and strangles can be quite profitable. An example was Nokia today. A 12-13 strangle bought yesterday, returned +22% profit this morning.

(please click on image to enlarge)

The table below shows some upcoming straddles for the next 2 days:

The move required is the maximum percentage that the underlying stock should move to compensate for the cost of both the call and the put.

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