Best earnings season options trades from JPMorgan quant guru Kolanovic - Business Insider

puts — earnings carry elevated headline risk.

"As a short-term strategy into earnings, we recommend investors purchase General Motors November 8th 35.5 strike puts for $0.82, indicatively . Our analyst sees GM missing earnings, owing to a number of moving pieces for the quarter, which we believe are likely to create above-average earnings-driven volatility."calls — poor sentiment and muted expectations set a low bar for an outsized earnings move.

"We recommend investors purchase Royal Caribbean Cruises November 8th 113 strike calls for $2.00, indicatively , as muted Street expectations, poor sentiment, and an earnings multiple at a multiyear low, set a low bar for 3Q which we believe will be a positive catalyst.""We recommend investors purchase Newell Brands November 20 strike straddles for $2.25, indicatively , taking advantage of NWL's cheap earnings volatility, while the setup may make for a volatile quarter.

"We recommend investors purchase Microsoft November 1st 135p/140c bull risk reversals for $0.82, indicatively . This structure assists in reducing the impact of the stock's elevated earnings related volatility while maintaining our positive directional view on the stock following JPM's favorable FQ1 Partner Survey.""We recommend investors purchase Advanced Micro Devices November 1st 32 strike straddles for $3.

"Given the macro uncertainties , and potential importance this quarter may have as it relates defining a direction of the stock into year-end, we believe the current option implied move to be conservative.SEE ALSO:

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