Trading Insights
How to Trade Earnings with Straddles (Featuring Netflix and Tesla)
Here’s a way to play earnings by comparing the historic average earnings move of a stock to the current implied move. We’ll use two stocks
Here’s a way to play earnings by comparing the historic average earnings move of a stock to the current implied move. We’ll use two stocks

Kohl’s Straddle, the combination of calls and puts at the 40.50 strike (at-the-money) is trading for $3.50. That prices in a move of 8.6% through

The Option Straddle, combination of calls and puts at the 23 strike (at-the-money) is trading for $3.20. That prices in a move of 13.9% through