Skip to main content

Limiting Risk to Kick Off Earnings Season

Earnings season is upon us and Brian has a safe play to limit your risk in the Options Market. Last Friday on CNBC, Brian took a look at replacing a stock. He feels YUM! is a good play here because it has seen plus or minus 5% moves post earnings for the last 4 quarters. The play here is to sell the Aug. 38 put and with those profits buy the Aug. 42 call. Here you collect 30 cents on the trade. You will profit if YUM! gaps above $42. If YUM! is below 38 you will be put to it and have to own the stock there, but Brian feels very comfortable in doing that because he feels $38 is a good area to get in.

Brian's Play on YUM!

Comments

Popular posts from this blog

Watching to see if this next down move has as much volatile force to downside as previous one. $SPY $/ES $VIX #EAVOL https://t.co/zCHLDgAaUV

Watching to see if this next down move has as much volatile force to downside as previous one. $SPY $/ES $VIX #EAVOL #VIX https://t.co/zCHLDgAaUV — Brian Stutland (@BrianStutland) Jul 16, 2021 Source: @BrianStutland July 16, 2021 at 09:14AM More info Your Website/Page Anchor Text Here