Sean Seshadri-Playing Earnings Reports

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Playing Earnings Reports Earnings reports will be the focus of Wall

Street as investors wait for companies to show increasing profits throughout the year.

One way to play these key barometers is to use a strategy called a straddle.

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This strategy is involves buying options without buying stocks.

Calls allow you to make a profit when a stock goes up, and put options allow investors to profit from the downside.

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The straddle involves buying calls and puts before the earnings reports in order to profit from the movement in the stock.

The risks involved in the trade is that if the stock does not move.

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Also you want to place the trade on with low implied volatility of the options.

As a decrease in volatility can hurt the trade.

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