Options Playbook Radio 227: COST Backspread Capturing Earnings

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Costco (COST) has earnings coming up next week. We're going to do a backspread with puts, or a ratio volatility spread. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • A review of last week
  • COST will announce earnings on 10/4
  • What does the chart say?
  • Let's do a backspread with puts
  • What's the expected move?
  • What's our take?
  • Selecting the expiration and strikes
  • What if we're wrong?
  • What if we're right?
  • What is the maxium risk? Reward?
  • What happens the farther you go out in time?
  • Does it work for every underlying?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

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