Earnings season is the period when most public companies report their quarterly earnings. It typically happens in late January, late April, late July, and late October.
Before Earnings:
After Earnings:
Sell Strategy: Sell options into the IV spike before earnings. Collect expensive premium.
Buy Strategy: Avoid buying into the spike. Wait for the collapse, then buy if you're bullish.
Straddles: Buy straddles before earnings when IV is lower. Profit from big moves.
Most retail traders buy expensive options (calls or puts) before earnings, expecting a big move. They get the move but lose money because IV crush destroys premium faster than the stock moves in their favor.
Earnings typically cluster. When big companies report (Tesla, Apple, Microsoft), the whole market moves.
Related: IV Crush, Implied Volatility, Straddle, Earnings Trades
