Only two earnings prospects for after the close today, as befits the last trading day before a three-day spring weekend.
Fortunately for straddle-meisters, the two -- AMD and SNDK -- are both highly prone to earnings surprises and have fairly high volatility.
In theory, that's the winning mix for a post-earnings move.
In fact? Well, that's a subject for testing -- forward testing in my case. I'm keeping track of the earnings this season, with an eye to understanding the relationship between a history of surprises, the level of volatility, and what prices do after the announcement.
Volatility is the big factor, I think. Straddles, after all, rely on increasing volatility to make a profit. So does the trader want low volatility with room the rise, or high volatility with the energy to rise even higher?
That, my dear Watson, is the crux of the matter.