We’re most likely done with earnings-related trades until the next cycle, so it’s time to move on to the compelling world of iron condors.  Before we go any further, I want to talk about the last couple trades and the strategy in general.  Let me start by saying, yes, the earnings strategy is a bit of a work in progress because no two earnings seasons are the same.  I’ve traded options for 20 years and yet I’m still learning.  That’s because unlike directional only trades, there are a lot more moving parts when it comes to options.  While it certainly makes the trade more challenging, it also provides a lot more opportunities for those savvy enough to [...]

Earnings season may be wrapping up, but that doesn’t mean the juicy options spreads have gone away.  In fact, we’ve uncovered two delightfully tasty earnings strategies for this week.  We’re going strictly Double Calendar this week (DC-style?) as we continue to refine our strategy to a finally honed profit-making machine.

So the one thing we didn’t figure on when doing the Macy’s (M) trade was that the company is actually bovine defecation outlet posing as a department store chain.  When this reality hit, the stock dropped quite a bit more than the straddle price predicted. Granted, the options market didn’t know that Macy’s has actually been overrun by commie nazi zombies.