Buying Premium Prior To Earnings - Does It Work?

[Kim]

I got the following email today from tastytrade:

"We Put The Nail In The Coffin On "Buying Premium Prior To Earnings"

"We look at whether or not you could make money on the implied volatility expansion leading up to an earnings announcement."

Since buying pre-earnings straddles is one of our key strategies, I went to watch the segment.

Click here to view the article

[Jesse]

Nice article, Kim.  

 

Often times educators present things as facts.  Rarely are there black and white facts in trading and investing.  It would be a lot easier if it were that simple but it just isn't.  Every trade idea will have advantages and disadvantages to it.  This is why it's so important to keep an open mind in trading and life in general! Easier said than done, as it takes effort and self awareness. More important than the trading strategy is a person's ability to stick with it as there are countless ways to make money in the trading world.  (And I just made that sound like a fact but it's really a belief) You've been a great example of commitment to sticking with a strategy and have been richly rewarded for it.