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Straddle Before Earnings — Betting on Big Moves

r/optionsoptionsShort-term (1-2 weeks)by reddit_community

Buy straddles 1-2 weeks pre-earnings, sell day before when IV peaks. Profit from IV expansion, not the earnings move itself. Works on high-mover stocks.

ENTRY RULES

Select stocks with >8% historical average post-earnings move | Buy ATM straddle 7-14 days before earnings | Entry when IV Rank is below 60 (room for IV expansion) | Only on liquid options (bid-ask < $0.20) | Max 2% of portfolio per position

EXIT RULES

Sell straddle the day before earnings (close) | Or sell when IV Rank exceeds 90 | Stop loss at 30% of premium paid | Never hold through earnings event | If IV does not expand by 3 days before earnings, cut the trade

INDICATORS

IV RankHistorical Earnings MoveATM PremiumDTE

ORIGINAL POST

334

r/optionsposted by reddit_community

Straddle Before Earnings — Betting on Big Moves

Buy ATM straddles 1-2 weeks before earnings on stocks that historically make big post-earnings moves (TSLA, NFLX, META, AMZN). The key is buying early enough that IV has not fully expanded yet, then selling the day before earnings when IV peaks. You are NOT holding through earnings — selling the IV expansion itself. Requires tracking historical IV patterns for each stock.

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Straddle Before Earnings — Betting on Big Moves | iGotFomo Strategies