$1.4 trillion worth of FANG reports earnings this week. Here's how to play it

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How to play Facebook and Amazon stocks into earnings via TradingNation

div > div.group > p:first-child"> Facebook and Amazon, worth $1.4 trillion combined, will report on earnings on Wednesday and Thursday, respectively.

"If you look at Amazon, options on earnings are implying a roughly 3 to 4% move," he added."This is in comparison to a roughly 5% to 6% move normally. For Facebook, the options are a little bit more expensive but they're also relatively cheap. They're implying a 5.5% move. Normally, Facebook moves more or less 7% on earnings."

A straddle trade makes money when the stock price falls or rises by more than the premium paid – at the time of expiration, either the call or put option pays off for the trader no matter which direction the stock price moves.

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