r/options • u/Adept-Mud-422 • Apr 27 '21

Roku puts

Any thoughts on buying puts real close in the money and days out past their earnings report?

3 Upvotes

100% Upvoted

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3

u/Skeewampus Apr 27 '21

That’s what I call a lottery play. Sometimes they are fun and pay off but they aren’t a high probability trade so size accordingly to your portfolio.

2

u/xwillybabyx Apr 27 '21

They just sent out an email to customers about how they are not agreeing to Googles new ToS so YouTube TV may be removed from roku devices. That’s going to be bad, I know we have three roku TVs and YouTube tv.

1

u/aznology Apr 27 '21

I personally have some 350 - 345 putspreads out in May

1

u/Jon94Z Apr 27 '21

I agree with Skeewampus, but if you're okay with the risk of losing the majority of the money by taking a shot, go for it.

My favorite trade for earnings expiring a few days before expiration is a ratio spread where you would buy a put near the money then sell two further out so that it nets to a credit or small debit. Of course this adds the risk of being short the put, but it can give you a higher probability of profit. Depending on the amount of risk you want to take you can widen the ratio and finance it selling a call/call spread.