Investing With IBD Ep. 331 How To Harness Big Earnings Moves: Develop An Options Playbook
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Jul 30, 2025 Bob Lang, founder and chief options strategist at ExplosiveOptions.net, known for coining the FANG acronym, shares his insights on navigating earnings season with savvy options strategies. He emphasizes the importance of risk management to avoid heavy pitfalls while capitalizing on big market moves. The conversation explores using put options as a safety net, strategic hedging techniques, and the analysis of recent trades like Cadence Design. Lang also discusses adapting to market volatility and the impact of interest rates on trading decisions.
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Risk Lessons from Dot-Com Crash
- Bob Lang shares his personal experience losing money on margin during the dot-com crash in 2000.
- This event taught him the critical lesson of managing risk carefully in trading.
Use Bull Call Spreads for Earnings
- Use options spreads like bull call spreads to participate in earnings moves with defined risk.
- This strategy lowers option costs and caps losses while targeting significant returns.
Select Strikes by Expected Move
- Choose strikes and expirations based on expected move and confidence in the trend.
- Use straddle prices to estimate expected range, then select strikes offering balance between risk, reward, and probability.
