Debit Call News Today

Share: A stock set to report earnings has options pricing in a certain expected move based on the uncertainty surrounding the earnings release. This can lead to elevated premiums (making options more expensive). After earnings, with the uncertainty gone, options reset to price more day-to-day expected moves. That means that further out-the-money Calls or Puts, particularly beyond where the stock actually moves, may see a sharp overnight decline in implied volatility (making them less expensive)...

Share: Tesla (NASDAQ: TSLA) stock is back in the news following a sell-off over the past few weeks and a bounce higher in the past few days. Well look at what the options market is expecting in terms of the magnitude of upcoming stock moves. Well also look at how spreads might be used in a high-premium environment to reduce capital outlay – whatever your trading view. Tesla options are pricing about a 10% move by March 19th, about $65 in either direction Options are pricing 14% move into Apr...