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Home › Forums › Swing Trades › Pre-Earnings Trade in GOOGL
Pretty good pre-earnings trade here…
The stock has been rangebound for 2 quarters now, odds are it will see big moves in anticipation of earnings. If it manages to clear 810 then it’s off to the races.
If you look at VXGOG– the VIX for GOOGL, it’s pretty low here.
Here’s the trade I like:
Buy to Open GOOGL APR4 at the money straddle.
I’ll put in more details once the market opens.
Ok here’s the trade…
And liquidity is not going to really be there… we’ll probably be the only ones involved on the options board initiailly so make sure you use limit orders.
Buy to Open GOOGL Apr4 770 straddle @45.50 or lower
Going to go half size and will add to the trade at 38.
The intent on this trade is to exit before earnings. The closing price on the trade is 42.80.
However if you’re like me and took it through earnings… then you gotta see a little more downside. The stock traded to 720 in the aftermarket and hung out around 730 through the night.
Ideally GOOGL sees a move back to 730. If we start to see a squeeze then I would look to close out the put side entirely to reduce delta risk. If you have the margin, then you can buy 50 shares here to reduce directional exposure.