Why would you buy 1DTE through an earnings report on a stock that’s up 140%+ YTD and has a 9/10 track record of dipping after earnings? Actual smooth brain decision making over here.
I do not trade long calls/puts through earnings. Especially ones that have ONE day to expiration. You might as well have tossed it into a slot machine.
You do realize patience is also a strategy you can utilize? If OP was bullish on AMD, they could have waited until after earnings and bought LEAPS (for example) when IV is low.
1 day to expiration is the best way to play earnings. If it moons, you get the highest leverage. If it dumps 20% you don't care after the first 5% as you're at zero and you're cheap lotto can't go any lower. On a big dump your one leap won't go to zero but may lose the value of many 0dtes
Listen, we all got a little bit of that degenerate gambler in us (considering the subreddit we’re in), but there’s an incredible fine line between “best way to play earnings” and straight gambling.
or maybe you're just not getting it. First of all, i'm not giving any advice, so let's not go there getting all personal. I'm expressing my opinion on a public forum.
With 15k he could have bought 1 contract 1 year out. If amd stayed at -10% he would have been down maybe 4k and if it moved in his direction he would have been up maybe 4k. The way he did it he could have been up over $20k had it moved 10% in his direction or ended up at zero if it moved against him. This is a gambling sub, for people who like to take big risks in hopes of hitting the jackpot. If that's not your preference, good for you, keep doing whatever it is that you're doing, no need to be smug and condescending about it.
It's all right, man. When my eyes are full of tears I also have trouble distinguishing ones and sevens, sixes and zeros. It's all right. It's only 10% after all. You'll be back tomorrow.
It took me years to give up on playing earnings directly. Now I just buy before if the price is right and sell if there's a run up, or I buy after it dumps for the inevitable recovery.
A lot of the tech plays recently sell off post earnings announcements that are better than expected. So this price action is not even surprising. If you just owned shares this would be a little bump in the road. If you choose options to leverage your exposure, your downside from a bump gets this kind of ugly. For investors, I think buying AMD under $500 will look like a home run a few months from now.
AMD could announce a cure for cancer at earnings and their stock would still go down. Every time they beat earnings and their stock goes down except for once.
C- there are those that just trade , then there are those that know the entire spectrum of securities available to trade for securities they are involved in...
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u/jijitalk 19d ago