Pre Earnings: 14-day Diagonal

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 20 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:

• At Normal Time

Video Transcript