Thoughts of a mechanical engineer turned programmer turned statistical investor. Here to save you from making mistakes I made at the beginning of my investing career.

GOOG, MSFT, V Earnings play follow up and daily post

So goog reputed and dropped 100$.

But my earnings position in google really just stayed the same (-80$ for the earnings part) and is on track to expire worthless:

Goog earnings position

And that’s the beauty of positions which are combined bear and bull positions, as opposed to just 1 way positions, bear or bull.

A put ratio spread is really just a bear put spread and a short put. So is the stock drops, the BPS part makes money while the short put loses, and because it’s far OTM, the short put is on track to expire. And that’s fine, because it’s a net credit position.

MSFT reported and popped 10$ so the ratio spread made a bunch of money both bc MSFT popped but also bc after reporting the earnings volatility premium disappears so the extra short put decays fast.

V reported and popped 15$ as well. I was more conviction in V so the earnings play was very directional bullish, with a plan of course if it didn’t work out, but since V popped it obv made a bunch of money:

CAT, MCD, FB report this evening, I already have a short put position in FB, but will update later if I decide to play something.

Have a good day!

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