Hello,
I am fairly new with options trading, but I have quite some experience with regular stocks. I believe I have developed a decent strategy with which I have had some success, but I'd like some feedback on it regardless.
Usually, my strategy is to watch for heavy market overreactions to certain earnings, check for an IV below 40%, and buy calls 30-45 DTE out. And uh... that's it.
I've made around $5000 from it already, primarily from UBER, LYFT, DELL, etc etc.
While it is occasionally difficult to understand whether something is an "overreaction" and whether a rebound is priced into the calls themselves, usually it is still decently predictable and can be understood with some research - i.e. a company misses on immediate EPS and quarterly revenue, but has solid outlook and good revenue forecasts for the future.
Obviously this strategy is intentionally simplistic and quite easy to follow, but I'd like to hear other peoples' thoughts on this.
Thank you so much.