Earnings Options Play: $DATA

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$DATA has a recent history of massively underpricing implied volatility! Heading into the last six earnings reports, $DATA options underpriced the next day move by an average of 50%! Talk about buying volatility at a discount! Screen Shot 2016-05-05 at 3.49.12 PM

Right now, $DATA options are pricing in a 13% move, down from a steady 18% move all week. I jumped into the May 65 calls for an earnings play on very cheap volatility! There’s a similar story with $LOCO. Jumped on the May 14 calls there too!

 

 

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