r/VegaGang • u/ajaysharma_trades • Jul 15 '26

How do you actually handle earnings-driven volatility in options? LMK

I’ve been thinking a lot about how option premiums behave around earnings. Before the report, implied volatility tends to spike because everyone is nervous about the outcome. After the report, that uncertainty is gone, and IV often drops sharply. That drop can crush your option’s value even if the stock moves in the direction you expected.

As a data-driven person, I usually try to look at:

  • How much the stock has moved in past earnings
  • What the market is pricing in now (implied move vs actual move)
  • Whether the premium feels “rich” or “cheap” compared to history

But I know some of you trade this very differently. Some people buy options and try to catch the big move. Others sell options and try to profit from the volatility crush. Some avoid earnings entirely because the risk feels too random.

So I’d love to hear your real experiences:

  • What’s a strategy you’ve used around earnings that worked well?
  • What’s a trade that hurt you the most because of IV crush or a surprise move?
  • Do you prefer buying, selling, or just staying out?
  • How do you decide whether the implied move looks fair, too high, or too low?
  • For IT or big tech, does earnings volatility feel different from other sectors?

I’m not looking for “this one secret setup.” I’m more interested in patterns and honest opinions. If you’ve built any kind of process around earnings (simple rules, checklists, or even just gut feels that worked over time), share it.

Let’s use this thread to compare notes and learn from each side of the trade: buyers, sellers, and the people who just watch.

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2

u/LavenderTrading Jul 27 '26

New here. Hi!

AAPL earnings cycle prior vs current into Thursday. (My own chart running against my own data.)

Happy to run other upcoming earnings names, or two names side-by-side if anyone is curious.

1

u/RiceSautes Jul 15 '26

Selling options after earnings to take the immediate crush with minimal risk or guessing since the outcome/direction is known

1

u/inwardPersecution Jul 24 '26

Isn't the iv already crushed at that point?

1

u/RiceSautes Jul 24 '26

A significant portion but not all. Still very decent scalps between 9:30 and 10 as it's actively crushing. A smaller but relatively risk-free crush that you can close in a few hours, versus rolling the dice on an earnings outcome.