Trading options at earnings · Invest & Retire Community

Jan '24 (edited) • Monthly passive income

Trading options at earnings

I did couple of option trades of MSFT in my paper account using a few different strategies - strangles, calendar spread and iron condor. All trades were opened on Jan 17 (13 days to earnings), and today (Jan 30) I recorded the unrealized P/L - I will close them later as I want to observe how the IV will affect the options after earnings. The idea was to benefit from the highest IV just before earnings. MSFT price on Jan17 was $389.9 and today is $408.60. The stock gained $18.70 since then but I didn't know that at the time I opened the trades, so most of the strategies were neutral, allowing price movement to either side. See the results below...

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