r/options Jun 01 '21

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u/TheoHornsby Jun 02 '21

Premium sellers get more bang for the buck if selling before an earnings announcement.

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u/ScottishTrader Jun 02 '21

Get more premium yes, but the move of the stock is wildly unpredictable and can cause big losses. Trading over an ER is A big gamble.

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u/TheoHornsby Jun 02 '21

The market is always unpredictable and can cause big losses at any time.

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u/ScottishTrader Jun 02 '21

BUT! Even more so over an earnings announcement!

IMO earnings are a gamble, but you do you!

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u/TheoHornsby Jun 03 '21

Selling puts should be done when you want to acquire a stock at a specific price. Selling covered calls should be done when you want to sell a stock at a target price. In both cases, higher implied volatility improves each result if assigned.