Priya PatelTLDR: 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.
