Here's how you can trade Options during the corporate results season
Every quarter we are presented with opportunities to trade due to the announcement of corporate results. These results create movements in the stock prices. As we all know more movement means more opportunities to trade.
How do Options come into the picture?
There are two roles - options can play in trading result-led movements. One is to estimate the move that result may create, and the other is of trading that estimate. Let us look at each one of them one by one.
1. Option as an Estimator:
As we all know option premiums are influenced more by the sellers of the options. Just like Insurance premiums are dictated by the Insurance Sellers (Insurance companies). Now, consider result season as the time of infection season like monsoons (where there is more risk of disease). If there is more risk, the insurance sellers or in our case option sellers will command more premium.
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