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Strangle Trades Ahead of Earnings in HealthEquity, Inc. (Symbol: HQY)

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Strangle Trades Ahead of Earnings in HealthEquity, Inc. (Symbol: HQY)

Posted December 4, 2023
Jeff Praissman
Interactive Brokers

This morning 1,700 HealthEquity, Inc. (Symbol: HQY) December 15’23 75/65 strangles traded ahead of HQY’s scheduled earnings announcement after the market close on December 5th.  The HQY December 15 ’23 75 calls traded for $1.15 and the December 15 ’23 65 puts traded for $1.75 for an overall price of   $2.90 for an opening trade in the strangle. At the time of the trade HQY was trading at $69.96.

HQY has outperformed or equaled estimates seven out of the past eight earning cycles.

HQY has outperformed or equaled estimates seven out of the past eight earning cycles.

HQY is currently trading at $68.10. HQY has a 52-week high of $76.62 and a 52-week low of $48.86.

HQY is currently trading at $68.10. HQY has a 52-week high of $76.62 and a 52-week low of $48.86.

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3 thoughts on “Strangle Trades Ahead of Earnings in HealthEquity, Inc. (Symbol: HQY)”

    • Hello Roger, these were strangle trades. A strangle trade is an order to simultaneously purchase a call and a put with different strike prices, where both have the same underlying and expiration date. Straddle trades have the same strike for the puts and calls. We hope this helps!

  • Thanks! All these years I’ve been using strangle to mean selling a put and call and straddle to ean buying. But it seems that they relate to the terms, strangle when they are different as in this case and straddle when they are the same.

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