I was looking at the SNAP Jul 28 2023 11.000 PUTS at 0.71 and GOOG Jul 28 2023 130.000 CALLS at 1.12 yesterday before close.
GOOG rose to over $130 from $123 and opened at 131 today so the call is now in the money but the call only went up to $1.29 for a 15% gain.
During earnings, SNAP cratered to $10.18 from $12.50 but the value of the put went from 0.71 to 0.86, for only 21% gain. WTF ???
I somehow understand the concept of premiums being higher due to high IV before a big event like earnings. But still…How can this ever be profitable ? Considering the small upside when you are right and total loss when the price goes in the opposite directions or doesn't move?
Can someone explain ?
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