Options Playbook Radio

It's earnings season again. As such, we're looking at an inverse skip-strike butterfly to capture some earnings move. You can find skip-strike butterflies with calls on page 108, and inverse skip-strike butterflies with calls on page 112 of The Options Playbook, on OptionsPlaybook.com, or on the Amazon Kindle edition. In this episode, Brian covers: A review of last week's AMZN butterfly Lesson to learn: Time makes the trade cheaper Determining strike prices Making sure you do not get blown out Looking at the implied volatility How to use time premium What is the net credit? What is the maximum risk?