Big Names Reporting Thursday/Friday
Thursday brings in another big day of earnings, with a slew of companies reporting after the bell including:
- Apple (AAPL)
- Coinbase (COIN)
- Draftkings (DKNG)
- Fortinet (FTNT)
- Cloudflare (NET)
- Block (SQ)
- Expedia (EXPE)
- and more!
Hershey’s (HSY) also reports before the bell on Friday.
Earnings Strategy
Many of these big names have provided opportunity for out-of-the-money butterflies due to the volatility involved, but I’m spying a ticker that I think will be a good choice for a neutral strategy: Hershey’s.
I utilize my neutral strategy when a ticker has a much larger market maker move than what the stock typically moves, especially when it’s a stock that doesn’t typically move much over earnings. HSY, for example, has a 4.5% move being priced in, but it typically moves less than 2%. This gives me a good opportunity to sell some premium.
Premium Selling Example
So, how does one sell premium over earnings? I used this same strategy with Visa last week, which I featured in a Trade Review video. Check out the example below!