On Friday I fancied trying my first after earnings trade, and decided to virtual trade BBY after their earnings announcement on 18th Sept. I noticed that the minimum move in stock price after the last 3 earnings announcements was 10%, and at that point the stock was trading at 46.44.
I bought the BBY DEC 45 Call and Put for a combined premium of 5.75, and have targeted the stock to reach either 51.08 or 41.79 , or before the next earnings announcement, as my exit point.
I will report back on how this one works out, and would be interested in your views on this trade.
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