NFLX has an earnings announcement on Monday after the market closes. We are setting up this trade to use the high IV of the APR21 options to get a large credit that we are protecting with the lower IV MAY12 options. This allows us to create a profit on the trade as the short term IV collapses after the earnings announcement.
ULTA has been on a multi-year bullish trend. It also has an earnings announcement coming on May 25th. We are combining these two situations to create a Bull Call Calendar that targets a 287.50 strike and uses the earnings announcement to leverage the IV change for profits.
We are in a choppy sideways market after the recent bull run. The market has seen a rise in volatility and a few minor drops in the last few days.
I have put together a basic market overview and a set of trade targets that we can use in the near future. This includes a list of upcoming earnings trade targets.