AAPL Earnings trade – Strangle
Yesterday, we identified a nice opportunity to trade AAPL earnings. We sold a strangle at the 570 and 650 strike prices, but the important decision was the choice of expiry series. We could have played the weekly series that expires today, but this would have exposed us to large losses if AAPL made a big move. Instead, we noticed that Implied Volatility had also spiked up in Nov1 weekly series to 47%.