This strategy, Buy a Call and Put at-the-money (a long straddle) 2-3 weeks before The Volatility Rush takes advantage of increasing options premiums into earningsĪnnouncements (EA) caused by an anticipated rise in Implied Volatility (IV). Volatility Rush Strategy - Best for Options Traders Strike Price is optional but recommended.

Buy Insurance: Buying back Call and Put at Strike price which 10% lower than Sell.

Expiration Date: It should generally be the closest expiry immediately after the.

Options Strike Price: Current Stock Price – (% Predicated Move x 2).

Earnings Date End Date : Current Date + 1.

Earnings Date Start Date : Current Date + 1.

It includes only those stocks whose earnings are releasing This popular stockearnings screen will give you a list of stocks which do not react Price move, you have a much better chance to profit from the reduction in IV withoutįor this trade, open the position either (1) the night before the EA when the companyĪnnounces earnings or (2) during the EA day when it announces post-market, generally Consequently, by minimizing the effect of the post-EA Right side of the price move, that’s a great thing. Which experience great price moves post-EA.

Generally won’t significantly affect the options price, unlike an “action” stock, This trade is practical due to the low-to-moderate price-move after the EA, which In assessing this trade, you need to do your homework to ensure you collect sufficient You then close the position right after the EA by buying the option back much cheaperĭue to the significant drop in IV that occurs after the mystery of the EA disappears. Theīasic trade idea is to sell put or call options right before the EA, collectingĪ credit when options premium is very high due to elevated implied volatility (IV). Low-to-moderate price moves (≤4%) following their Earnings Announcements (EA).

The Volatility Crush strategy is used with stocks that typically experience relatively Volatility Crush Strategy - Best for Options Traders

Close the position in 7-10 days, or possibly earlier based on price move.

Buy the stock if stock has reacted positively.

Earnings Date End Date : Current Date + -2 Days.

Earnings Date Start Date : Current Date + -1 Day.

The screen includes those stocks whose Earnings just came out in last two days.

Stocks exhibiting negative post-EA price moves are sell/short-candidates.

Stocks exhibiting positive post-EA price moves are buy-candidates.

This popular StockEarnings screen below will give you a list of stocks that historicallyĮxhibit significant price momentum following an EA for the next seven days: If you see postĮA-momentum is halted or reversed by a significant opposite move, re-evaluate your The 7-10 day scenario is the maximum trade hold-time. Important: Ride-the-Wave is predicated on significant price momentum triggeredīy an EA.

then buy-to-close after 7-10 days, or possibly earlier if a desired price target.

near the close of the following day for a post-market-EA.

near the close of trading the EA-day for a premarket-EA.

short a stock one day post-EA if a stock reacts negatively post-earnings:.

Sell-to-close after 7-10 days, or possibly earlier if a desired price target is.

Near the close of the following day for a post-market-EA.

Near the close of trading the EA-day for a pre-market-EA.

Buy a stock one day post-EA if a stock reacts positively post-earnings:.

Ride-the-Wave targets multi-day price momentum following a company’s earnings announcement Ride-the-Wave Strategy – Best for Stock Traders

Nvda price action after earnings report