![]() Which experience great price moves post-EA. Generally won’t significantly affect the options price, unlike an “action” stock, This trade is practical due to the low-to-moderate price-move after the EA, which ![]() In assessing this trade, you need to do your homework to ensure you collect sufficient You then close the position right after the EA by buying the option back much cheaperĭue to the significant drop in IV that occurs after the mystery of the EA disappears. Theīasic trade idea is to sell put or call options right before the EA, collectingĪ credit when options premium is very high due to elevated implied volatility (IV). Low-to-moderate price moves (≤4%) following their Earnings Announcements (EA). The Volatility Crush strategy is used with stocks that typically experience relatively Volatility Crush Strategy - Best for Options Traders
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