Move Initial Calculated with airSlate SignNow

Move single calculated

hey everyone happy wednesday now today apple's going to be releasing earnings after the close and i get asked this question a lot how can we calculate what the expected move is well today i'm going to show you a quick and easy way to do this hey everyone welcome back to drawbridge finance my name is levi woods and this is an opinion channel only about money i don't offer financial advice or any trade recommendations now for those of you following along on my drawbridge 50k you know that i we have apple earnings today it's january 27th and earnings are going to be released tonight so i get asked all the time how do i calculate out the expected or the estimated earnings move well i'll show you the way that i do it because it's pretty effective and of course it doesn't give us the right answer all the time but it gives us an idea of how much we should expect to see a stock move i'm gonna look at uh interactive brokers interface for a second what i've done is i've pulled up the apple cause inputs so this is the option chain and this is the weekly expiration so this is january 29th so it's going to be in two days time and what i can do is i can pull up an at the money straddle what is at the money means it means the the call and the put that are closest to the current trading value so i've done a freeze frame here the stock was trading at 142.52 and we can see the 142 call is worth around five dollars and thirty cents and the put is worth around four dollars and eighty cents so if we add those two together we should get a a total and that would be the cost of purchasing or selling an at the money straddle the brokerage platform does it for us automatically if we just select sell on both of these it'll show us that adding the two together we're looking at a value of around just over ten dollars now this is where the little bit of math comes in all i have to do is take that total that 10 and times it by either 0.75 or 0.80 that's usually what most traders use they're looking for about 75 to 80 of this total value and it's just a quick little calculation so i can see that i'm expecting 10 bucks times uh 0.8 means about an 8 move so if the stock is at 142 i can expect that tomorrow after earnings it's going to be trading around 130 450 or up as high as 150 71 and that's as simple as it is now i hope this was insightful because that's how i do it i mean i'm not saying that this is absolutely what's gonna happen but that's just how i make that calculation if you...