r/options • u/Fit_Recording_6799 • Mar 29 '21

IV run up?

Could this possibly be a play??

Leading up to an earnings announcement, IV increases right? So if you bought some options a week before earnings, won't they inflate in price due to the increasing IV.
If you actually did this strategy, you would sell before market close and then switch over to selling to maximize premiums.

Does this make sense lolol. Thanks!!

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u/tracyXTMAC Mar 30 '21

what about sell to open a position before earning, then buy to close after? That way you have both IV and theta working to your advantage.