Earnings Trade Update in DKS - Butterfly vs. Calls vs. Stock

In today's video, we will revisit the trade that we had set up on May 5 in Dick's Sporting Goods (DKS), looking for an earnings beat, using Big Five (BGFV) as our analogous anchor point.

When we set up the trade, DKS was trading near the $85-$87 price range. As of this video, we are now trading at $98.76, representing a gain of ~16% in the underlying equity.

However, depending on how you traded this move, your P/L will vary:

1. Equity - buying the shares here was the simplest and most straightforward trade, which also gives you flexibility in managing going forward.

2. Butterfly - the $95/$100/$105 butterfly is what we had set up in our original video, which so far is looking like a nice winner. This expires tomorrow, and for options traders, was a lucrative way to play this move.

3. OTM Call - this has not worked out, as a result of fighting against theta decay and IV crush, and the option purchased for $0.85 is currently worth around $0.40, with expiration being a key factor now.

4. OTM Call Debit Spread - this is similar to above, with the debit call, but lowered your risk by selling an option against the $100 strike call, allowing you to recoup some of your losses.

Here are all the links mentioned in the video:

➜ DKS Trade Setup Video:
https://youtu.be/mB5z7ZXJ_KU

-----------------------------------------------------------

⏱️ Here are video timestamps that might come in handy:

0:08 - Introduction
1:24 - Butterfly vs. Call vs. Stock
4:25 - Conclusion

-----------------------------------------------------------

✅ Download the Futures Volatility Box here:
https://www.tosindicators.com/volatility-box

✅ Download the Stock Volatility Box here:
https://www.volatilitybox.com/product/volatility-box-stock-early-invite/

✅ Watch the new Triple Pro Squeeze course here:
https://www.tosindicators.com/squeeze-course
#EarningsTrades #SwingTrading #ThinkOrSwim

Видео Earnings Trade Update in DKS - Butterfly vs. Calls vs. Stock канала TOS Indicators