Option Trading: ZELTIQ Aesthetics Inc (NASDAQ:ZLTQ) Powerful Short Put Spreads to Outperform Earnings
ZELTIQ Aesthetics Inc (NASDAQ:ZLTQ) : Powerful Short Put Spreads to Outperform Earnings
We find a very powerful outcome examining short put spreads for ZELTIQ Aesthetics Inc when we use a clever earnings risk management approach. This is the information that the top 0.1% have and now it’s time for us all to see it.
With relative ease we can become experts — to see the risks we want to take and see those that we want to avoid, which ultimately allows us to optimize our results. This is one of those cases.
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There is a lot less ‘luck’ involved in successful option trading than many people have come to understand. We can get specific with short put spreads on ZLTQ in this dossier.
Let’s look at a two-year back-test of a short put spread strategy and use the following easy rules:
* Test monthly options, which means rolling the put spread every 30-days.
* Avoid holding a position during earnings.
* Study an out of the money put spread — specifically the 30 delta / 10 delta spread.
* Test the put spread looking back at two-years of history.
More than all the numbers, we simply want to walk down a path that demonstrates that it is actually quite easy to optimize our trades with the right tools. In the set up image below we just tap the rules we want to test.
Next we glance at the returns.
If we did this 30 delta / 10 delta short put spread in ZELTIQ Aesthetics Inc (NASDAQ:ZLTQ) over the last two-years but always skipped earnings we get these results: