Earnings Trade on PFE: Bought 53.5 Straddle Options

On February 07, 2022, I bought 1 straddle option on Pfizer (PFE) stock expiring in 4 days (February 11)

Pfizer will announce the earnings report for Q4 2021 on February 08 (before the bell)

Expected Implied Move: +/- 6%

This is not trading advice. Investments in stocks, funds, bonds, or cryptos are risk investments and you could lose some or all of your money. Do your due diligence before investing in any kind of asset.

Once in a while, I like “playing” earnings trades. As Pfizer is a stock I trade options occasionally, I decided it wouldn't do a harm to add some spice to my options trades.

here is the trade setup:

• BOT 1 PFE Feb11'22 53.5 PUT 2.07 USD

• BOT 1 PFE Feb11'22 53.5 CALL 1.79 USD

For these trades, I paid 386 USD debit (before commissions)

Break-even points are $57.36 and $49.64

Recently I have started to implement Moving Averages to my trades, and according to them PFE seems to be projected on a downward trajectory, BUT a trend change can happen tomorrow after the earnings report.

Well, that’s why I prefer selling straddles they give exposure to both directions, just to make a profit trend have to be massive.

Let’s see, what tomorrow brings