My Options Edge – Earnings Options Strategies

Earnings events offer powerful opportunities for options traders, largely due to the predictable patterns in implied volatility (IV). Typically, IV rises leading up to earnings announcements and then drops sharply afterward—a phenomenon known as the “IV crush.” While this pattern seems ripe for profit, many traders, including the course author, have found that standard approaches like selling Iron Condors or Strangles often lead to inconsistent results.

For years, the author experimented with traditional earnings strategies—selling high IV options and trying to estimate the stock’s move using tools like the At-The-Money (ATM) Straddle or the Market Maker Move. Occasionally, these methods led to solid wins, especially when the stock barely moved post-announcement. However, just as often, large unexpected moves in either direction wiped out gains or resulted in significant losses. These inconsistencies made it clear that a more stable, reliable strategy was needed—one that aligned with the author’s preference for steady and consistent returns.

This realization led to a shift in thinking and a new approach to trading earnings: one that embraces the rise in IV before the event and avoids the common pitfall of IV crush afterward. By moving away from directional bets and focusing on low-risk, non-directional setups, the author developed a method that leverages the market’s behavior around earnings without needing to predict price movement.

The strategies shared in this course are not the usual “sell volatility” tactics. Instead, they exploit the pre-earnings IV build-up and avoid exposure during the unpredictable post-announcement period. This fresh, contrarian approach turns IV into an advantage, minimizes risk, and improves consistency. Traders will learn how to simplify earnings trades and gain an edge by thinking differently from the crowd.

Importantly, these strategies are being used in real-time in the author’s investment fund and trading room—demonstrating their practicality and effectiveness in live market conditions.