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Alphabet's earnings announcement for the first quarter of 2021 is scheduled for tomorrow. The consensus among analysts is that there is a 60% chance that
Alphabet's earnings announcement for the first quarter of 2021 is scheduled for tomorrow. The consensus among analysts is that there is a 60% chance that Alphabet will announce earnings that exceed expectations. If this happens, the stock price will rise to $2,650. There is a 20% chance that the earnings will be disappointing which causes the stock price to drop to $2,170. Also, there's a 20% chance that the earnings will be exactly as much as analysts expected. In this case, the stock price will not change. Alphabet's current stock price is $2,300. As a speculating investor, I have decided to buy 200 call options on Alphabet's stock with the strike price of $2,250 that expires on the day of the announcement.
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