Dark
Light

Betting bullish on fintech, the options rally into earnings.

1 min read
55 views

TLDR: A bullish options bet on a rallying fintech into earnings

Investing in stocks around earnings announcements can be challenging due to volatility and unpredictable outcomes. However, there may be an opportunity in buying longer-dated call options and writing nearer-dated calls against them in an e-commerce payment services company called Fiserv. Fiserv is expected to move about 3.5% higher or lower after their earnings report, which is in line with the average move of 3.2%. The stock has seen solid revenue growth and significant year-over-year earnings per share growth in recent quarters. The strategy of buying longer-dated calls and writing shorter-dated calls against them can help offset decay and potentially collect premium over time. This bullish options bet takes advantage of decreased longer-dated options premiums in Fiserv.

Previous Story

LIC Housing Finance: Boosting credit growth and margins with affordable loans.

Next Story

Quietly brewing: The banking crisis.

Latest from News