Microsoft beat earnings. The stock went up. Mike Khouw has a plan for people who missed it.
This is the exact moment retail traders Google "how to trade options on something that already happened." The binary event is behind us, which means the thing you were supposed to buy last week already moved. Khouw's advice is structured specifically for people who show up to the poker table after the river card and ask if there's still time to bet.
The stock surged. Record-setting appreciation. You read about it this morning. Khouw read about it yesterday. The people who made money read the 10-K three months ago and don't need Mike Khouw to tell them what a call spread is.
But sure, let's talk strategy now. The Q4 earnings report is public. The institutions already repositioned. The smart money took profit at the open. Mike Khouw is here to explain how you, the person who learned Microsoft reported earnings from a push notification, can still extract value from a move that finished before you woke up.
His plan probably involves selling premium or some other theta-decay horsesh*t that sounds sophisticated until you realize it's just a complicated way to make $40 while risking $4,000. The kind of trade where you spend six weeks monitoring it, adjust it twice, close it early because you got nervous, and net out to less than minimum wage after commissions.
The immediate binary event risk is officially behind us. That's finance-speak for "the casino already paid out and you weren't at the table." Khouw's job is to convince you the buffet is just as good.
Microsoft will report earnings again in three months. You'll miss that one too.
Photo by BoliviaInteligente on Unsplash
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