How a post-earnings price move is played by Call Option holders

This is one perspective on how to play an Earnings trade if you own Calls:

1) you own the December 13 Weekly $34 Calls into Earnings for $TOL
2) the initial reaction is up to $35 but it stalls quickly. But, it is still pre-market trading & you can’t exit your Calls yet
3) you short stock to lock in the gains on the long Calls < this is the key step 4) if a big % of Call owners do this step, then the stock fades back to $34 5) if you review the Option Chain, you will notice that the $34 Calls still have good value at the open 6) you win, & win again

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