- Fastly (FSLY) reports earnings after the bell.
- The expected move for Friday's close is 13%, about $14 in either direction.
- The earnings prior the stock moved +45.68% and was +50.32% intraday.
- The 3 earnings before were -6% (-12% intraday), -1% (+15% intraday) and -18% (-26% intraday).
The 1 month expected move with this Friday highlighted, via Options AI technology:
Ways to Play
Neutral - Targeting the event itself using this Friday's expiration and expected moves, here's a neutral Iron Condor and Fly comparison.
Here's a closer look at the Condor:
The condor has a high probability of profit from a breakeven standpoint but is risking less to make more. Keeping it 5 dollars wide limits exposure if the stock moves beyond its max loss levels.
Bullish - Using a bit further time frame, here's a bullish to expected move price target and the trades returned for Aug 21st:
The +110/-130 call spread has a breakeven of $116.60 in the stock and a max gain if the stock is at or above $130 on Aug 21st.
Selling the -110/+90 bull put spread has a max gain above $110 and a breakeven of 101.65 in the stock, Max loss would occur at or below $90 in the stock
Bearish - Using a bearish expected move target for Aug 21st we see the flip side of the bullish short put spread above and bullish call spread, but now flipped to be bearish:
Here's a look at the short call spread with gains below 116.60 and max gains below 110 but a risk of 13.40 for that higher probability: