Buying Premium for Earnings – a test case

I had toyed with buying a basket of Calls in 5 stocks for Earnings today. The candidates were: $CRM $DECK $MELI $MNST $SPLK

I had already initiated a trade in $MELI and ran out of time to do the basket by the time I got back home today. I rarely buy premium into Earnings but I wanted to track the basket nonetheless so I posted this brief summary before the market close today:

CRM_MNST_DECK_MELI_SPLKThese were the prices just before the close on the nearest ATM Call Options.

Now here is how things stand in After Hours:

CRM_MNST_DECK_MELI_SPLK_BIf you sold this basket before the close, well, you’re a genius. You would have $22.20 in collected premium for each 1 contract you sold on the basket. Only the $MELI position has had any real substantive move up. You would have had time to buy the dip on any of the others if desired. $SPLK looks to have seen some good Dip Buying interest, only down 1% now as of this post.

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