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What are your options: Disney pre-earnings trade setups
Today, our focus is on Disney, which is scheduled to release its earnings report after the bell. This article outlines eight options trades that can be set up today, prior to the earnings release. These strategies are designed to leverage the expected decrease in volatility, potentially leading to maximum profits at the opening tomorrow.
The strategies are categorized based on market outlook: three for a bullish outlook, two for a neutral outlook, and three for a bearish outlook. Each strategy is a credit strategy, intended to benefit from the earnings announcement tonight. The objective is to establish a position before the close, to fully benefit from the potential decrease in volatility.
The expected move is a crucial factor in these strategies. Each strategy takes the expected move into account, allowing you to choose the direction based on your outlook. Whether you’re planning to trade today or learn for future earnings events, these strategies provide a practical guide to options trading around major corporate announcements. Let’s proceed to discuss these strategies and prepare for the world of options trading.