Last week just before the Apple earnings announcement after the close on Thursday, I published an article on Seeking Alpha which suggested an options strategy to play prior to the announcement. Basically, I spoke about taking advantage of the big Implied Volatility advantage for calendar spreads, and placing long-December (IV = 74) short-November (IV = 40) calendar spreads at many strike prices, both below and above the stock price.
Today I would like to offer you a link to the follow-up article also published at Seeking Alpha.
Closing Out The Options Play For The Apple Earnings Announcement
Here is the link:
IV for the December options fell more than we expected after the announcement. This means that our original projections were too rosy. We were fortunate enough to make a gain on the strategy nevertheless. The learning experience was more valuable than the loss or gain.