Options trading earnings season
For stocks whose charts resemble XYZ above, there are strategies that you can use to take advantage of this fairly predictable volatility pattern while largely minimizing the effect of the earnings-related price move. By using this service, you agree to input your real e-mail address and only send it to people you know. Greeks are mathematical calculations used to determine the effect of various factors on options. In this case, your trade makes money if AMZN moves quite a bit higher or lower than by November expiration. This potential for a stock to move by a large amount in a certain direction in response to an earnings report can create active trading opportunities. NerdWallet strives to keep its information accurate and up to date. Effect of volatility changes on stock prices.