Where can I find the expected move?
Looking to make an earnings play, but having a hard time choosing strike price? tastyworks has a tool to make it easier for you! The expected move is an analysis tool that allows you to see what the market expects out of an earnings announcement.
The expected move for an underlying at earnings can be found on the trade page, to do this you will need to turn the expected move setting on. First type in the underlying that has earnings coming up, once that is up on the trade page, go to settings, and click "Show range of expected move during earnings".
It is indicated by a pale red/orange bar, located over the strike price bar. Below is a screenshot of where you will find the expected move in tastyworks.
The expected move range is calculated by multiplying the ATM straddle (a strategy that combines selling an at the money call and put) in the nearest expiration by 0.85. The end result is a +- number that we apply above and below the current stock price evenly.
For more on earnings and the expected move, check out our blog!
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