This is a discussion of the "Pre-Earnings: 14-day Diagonal" strategy from the Today tab.
Overview
- Long call diagonal
- 2 legs
Pre-Earnings: 14-day Diagonal Strategy Settings
- Pre-Earnings: 14-day Diagonal Strategy utilizes a custom strategy which is labeled "qa_TM_Diagonal_Special" under the custom strategy dropdown menu.
Pre-Earnings: 14-day Diagonal Open Conditions:
- Stock is above the 50 day SMA
Details on Options TradeMachine is Selecting for Pre-Earnings: 14-day Diagonal Strategy:
- 1x long 50 delta call near 14 days to expiration
- 1x short 30 delta call near 7 days to expiration
Earnings Handling for Pre-Earnings: 14-day Diagonal Strategy:
- Custom Earnings
- Open position 14 days before earnings
- Close position 1 day before earnings
Pre-Earnings: 14-day Diagonal Close Conditions:
- Options reach expiration (Close all legs with front month options)
- Note: This closing rule usually occurs before the closing rule for custom earnings.
Open next trade for Pre-Earnings: 14-day Diagonal Strategy:
