Selling Options During Earnings? - Wheel Options Trading Strategy Tips

Should you sell options during earnings? On the one hand, volatility is higher during earnings and you get more premium. But on the other hand, your position could be in deep trouble if you have a massive move against you going into earnings.

So In this video, I'm going to show you how to sell options during earnings using a very specific example. In fact, it's a trade that I traded in my own account.

Today's Video will cover:
Intro 0:00
Pros and Cons of Each 0:15
Example 1: Novavax 1:00
Why I like selling calls into Earnings 2:00
This software makes trading so easy 3:03
Review past earnings reports 4:01

Recommended Links & Videos:

#StockMarket #OptionsTrading #TheWheelStrategy

[EJL]

Hi Markus, thanks for your great video's! Could you please explain how premium/income from selling options is being taxed?

[alonhersch]

Thanks for all you wisdom

Id love your input on choosing an expiration date when option selling if i want to avoid the earnings rise and crash.
Would you pick a longer cycle to sell that expires weeks after earnings? Or avoid a cycle that includes alearnings all together

Would really appreciate your input

[garypage]

How about selling a short Strangle for an expiration date a few days after earnings. That way, if the stock goes either up OR down, you make money.

[thebullsandthebears]

I understand the 30% ROI with selling covered calls. After all, covered calls caps your upside and you want to make sure you’re getting paid enough for that cap. But is the 30% just a minimum, or do you always shoot for 30% because you find it’s the best bang for the upside cap?

[TheLightuponLight]

Hi Markus! I just found your channel - I have watched dozens of people on You Tube and your videos are top notch... they are so well presented and I can tell how deeply you know this work and that it is fun for you, which makes it fun for us! :) I did have one quick question about the wheel strategy that I can not get my head around.

I was hoping for a more detailed understanding of why exactly the process must start with a cash secured put and how different this really is form simply starting with buy write covered calls. What is the bottom line here - Is there less risk starting with puts? More financial gain? Differences in how you manage the position if the price declines? Is there something else I'm missing?

I ask because I find myself more hesitant to sell puts and I have only been selling buy write covered calls. It is hard for me to swallow potentially being on the hook to buy something for more than it is worth if a stock that has taken a dive and only received a small premium for this, it feels more risky somehow (though probably that is not true). Am I really losing out on premium ? I am also lowering my cost basis of course with the covered call. Perhaps it simply comes down to a feeling of having control to purchase back the Put and not buy the stock at all if things are going south rather than having to buy back the call and sell the stock? I know this is probably not interesting enough for a whole video but I could probably listen to you talk for hours walking through these details on the differences in the two scenarios and why this put is much more beneficial... if it is, I want to get over myself and learn to integrate it! Thanks!

[TheYoyozo]

Slightly off topic but have you ever done a video in using calls as insurance for a large position that you want to hold long term? That’s is buying puts to protect a legacy position.

[fernandodavidez]

What’s the software to see stock price action over earnings

[antonellolaise]

Hello Markus.
Pls help me to understand because it is not clear to me.
In your TPR trade, you have been assigned @37, so you own 27x100 you paid 37 (minus the premium of the PUT) .
Then, you sold 27 CALLS @37 (or 38).
If the price at expiration date is higher than 37 (let's say 42) you have to sell the stocks at 37 while they are worth 42.
So, this makes sense (probably) if you own the stocks. Otherwise I do not understand why selling CALLS is a good idea during earning when the stock (as you showed) has a high probability to rise.
Can you pls explain?

[jakewhite]

One day until the options expire. $37.57 is the current price. I’m hoping it goes up and gets called away. $3, 645.00 can get you a ton of Markus-Burgers….
Thanks for nugget…..it’s a smart play with no downside that I can see.

[dfghdh]

Selling calls into earnings is also insurance if the earnings is poor and the stock drops.

[fernandodavidez]

$2, 000 yearly subscription NO THANK YOU !