In make a play after the earnings announcement its a test of ones skill, as in life. Most options player love the fact that they enter an stock underlying before the announcement, but only to find that the where right in the direction.
However, the IV in the option sux out the premiums and you mostly found yourself on the losing side of the earnings play. Well the above was to take a position after the earnings.
As you can see, CRM still had downward pressure on the earnings announcement that this weekly option play paid you out.
50 x .55 = $2,800 debit
50 x 1.60 = $5,000 credit
or
10 x .55 = $500 debit
10 x 1.60 =$1,000 credit
Disclaimer: Friday Weekly - Options are not for the faint at heart, you are fight for this market not to break your bank... Risk on fund you're able to loss and keep your losses small.
