Jade Lizard -ITC

Jade Lizard Option Strategy – ITC Ltd.

Jade Lizard is neutral to a slightly bullish strategy that combines a short call spread and a short put. A Jade Lizard is placed when we have a neutral to a bullish assumption on a stock that has sold off and has high implied volatility percentile (IVP). High IVP allows us to collect more premium while having no […]

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Call Ratio Spread - Biocon

Call Ratio Spread – BIOCON

A Call Ratio Spread is neutral to a slightly bullish strategy that is created by buying one ATM or one slight OTM call and by selling two further OTM calls. The strategy gives us a net credit and thereby limiting the downside risk. It is important that you have a directional assumption that the stock […]

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Buying Options into Earnings Results Day – Implied Volatility Play

Buying Options just before earnings results are out is the most common phenomena among speculators and traders to gain from a sharp move in the stock. Due to this demand for options & uncertainty surrounding the results, options become expensive during this period due to high implied volatility (IV). Previously, I wrote about how one can take advantage […]

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Earnings Day Option Strategies - Implied Volatility Play

Earnings Day Option Strategies – Implied Volatility Play – Part III

Today, the May 18th 2017, are the earnings results day of BANKBARODA(Bank of Baroda),  BAJAJ-AUTO (Bajaj Auto), CESC, CUMMINSIND (Cummins India) and IDBI which are part of NSE FNO. We will take a look at non-directional Earnings Day option strategies like short Straddles & short Strangles strategies to work Implied Volatility play work in our favour. First, let’s […]

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