We expected a decent Volatility crush in the CMG Options after the release of its latest earnings report on Tuesday.
The Options market was pricing in a move of +/- 40 and sure enough it came in right at that level.
CMG reported well in Revenues, Income as well as new store openings. However the future forecast for growth seems to be slowing. It’s hard for a company approaching $5B in annual sales to keep up the 25% growth or more that it’s experienced in the past few years.
In our Iron condor trade, CMG seems to be settling well within our wings, and we have closed the trade at over 90% of max profit.
Choice of strikes, expiry, width of spread etc are covered in detail in our EarningsMax class – https://optiontiger.com/course/earnings-max/
Watch video below