Earnings Straddle. Part 1: Selecting a stock to straddle.

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Today I have selected Amazon (AMZN) as a good stock to straddle because it is reporting earnings in 3 days (actually 2), it is reporting earnings after market close, it is a highly liquid stock, and it has shown previous volatility during earnings reports in the past.

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This will be a 3 part series detailing:

1) Selecting a stock with intention to straddle.
2) Placing straddle orders. (If market conditions hold this will be the simple version known as "putting on" the straddle.)
3) Exiting the straddle. (I will get that reading done sooner than later. Plenty of time to digest and make a post about it.)

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Stay tuned for Part 2 coming on Thursday, 4/29.
Ghi chú
AMZN is registering OB, therefore, I have bought naked puts at nearest ITM strike with intention of buying the other side tomorrow at or near market close. In this case the premium is 132.55. I am still waiting on my fill. Always annoyed with this part. Changed my limit price 3 times, still can't find anything liquid.
Ghi chú
I decided for the sake of simply completing this exercise I would go up and get it at market price, setting me back -420 from the get on 1 contract. sheesh.
AMZNearningsplayFundamental AnalysisTechnical Indicatorsoptionsstraddle

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