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Buying options into earnings

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When it comes to earnings, there’s always the question of which strategy you should use as an options trader.

On one hand you want to make the most out of a potential powerful move like earnings reports usually generate.

On the other hand, earnings are binary events that can easily destroy any solid technical setup that you may have on your charts.

There are also other considerations that you’ll have to take if you are using options – like Implied Volatility, expected moves etc..

TastyTrade (financial network I think highly above) has doe a great research showing why buying options Pre-Earnings isn’t that effective over long term trading.

If you trade stocks and options during earnings, you MUST see this video.

*Note – Although TastyTrade staff do not believe in technical analysis, they still provide extremely valuable content about options that in my opinion once their research is combined with advanced technical analysis methods, like the Price Zones it can produce tremendous results.

Here’s TastyTrade’s video:


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