February 8, 2021 Terry’s Tips Trade Alert – Earnings  Eagle Portfolio

We are opening spreads on Agilent Technologies (A), which reports earnings on Feb. 16. The average post-earnings move is 2.5%, while options are pricing in a 5.8% move. One-month spreads are cheap, averaging well under $2.00, so we are opening more than 20 spreads. The delta is positive as A is in a solid uptrend and typically rises into earnings:

BTO 6 A 19Mar21 120 puts (A210319P120)
STO 6 A 19Feb21 120 puts (A210219P120) for a debit of $1.80 (buying a calendar)

BTO 2 A 19Mar21 115 puts (A210319P115)
STO 2 A 19Feb21 115 puts (A210219P115) for a debit of $1.45 (buying a calendar)

BTO 2 A 19Mar21 120 calls (A210319C120)
STO 2 A 19Feb21 120 calls (A210219C120) for a debit of $1.85 (buying a calendar)

BTO 6 A 19Mar21 125 calls (A210319C125)
STO 6 A 19Feb21 125 calls (A210219C125) for a debit of $1.90 (buying a calendar)

BTO 6 A 19Mar21 130 calls (A210319C130)
STO 6 A 19Feb21 130 calls (A210219C130) for a debit of $1.50 (buying a calendar)


Be prepared to change this (these) price limit(s) by $.05 or more in order to get an execution.

Happy trading.

Terry