For me, while a strangle can capture explosive earnings moves, it’s still risky — especially when premiums are high before earnings. The post-earnings IV crush is real, and if the move isn’t big enough, you can lose even if you guessed the right direction. That’s why I avoid paying the “volatility premium” and focus on setups where I have more control over risk.

Instead of relying on options, I prefer trading the underlying stock directly. This way, I’m not fighting time decay or IV changes — just the price action. If a company beats expectations and shows strong momentum, I can ride the upside; if it disappoints, I can short or stay out. It’s simpler and avoids the breakeven math in options.

For those comfortable with options, strangles can work with the right stock and timing, but I stick to trading the stock itself. Earnings season is all about speed, discipline, and reacting quickly to the numbers.

@Tiger_comments @TigerStars

# Market Amplifies Earnings Moves, Can a Strangle Make You Money?

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  • JimmyHua
    ·08-08
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    useful strategy
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    • Shyon
      [Cool] [Cool] [Cool]
      08-08
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