Can you explain more why u go so far out to November? So this is a longer term play vs doing the ATM 265 in Sept or in Oct looking to get out BEFORE earnings?
Sure. We want to own options that expire AFTER earnings are due to be released because the implied volatility will be higher. We do want to be out before earnings are released, but we want to be selling options that everyone wants to buy. The price will be higher on November options.
Can you explain more why u go so far out to November? So this is a longer term play vs doing the ATM 265 in Sept or in Oct looking to get out BEFORE earnings?
Sure. We want to own options that expire AFTER earnings are due to be released because the implied volatility will be higher. We do want to be out before earnings are released, but we want to be selling options that everyone wants to buy. The price will be higher on November options.
Hope that helps.
Dan