An associate of mine went long with ITM Calls (150 contracts – it showed up as a sweep) for TWLO an hour before the market closed at $15.53, right before earnings. AH TWLO beat earnings and the stock soared. Because he has a desk with GS, he was able to sell those options for $23.74 about 10 minutes after TWLO reported, while the market was closed. If he had to wait until the next morning like everyone else, those options would have been worth around $12 on open, giving him a loss. Money makes money. The rules are different. So if you can take advantage of anything out there, do it, and that includes getting Trader status on your taxes.
November 30, 20221 min read