From Theory To Practice - January 6, 2021 - When to Wait on Earnings Trades
Earnings trades always give us plenty of opportunities to stay engaged and sell premium in high IV environments. But there are certain instances when it might be prudent to stay out of a stock that has earnings coming up in two or three weeks.
We know that IV is going to be bid up heading into the earnings date, so by waiting until the actual earnings day to initiate a new position, we're able to better position ourselves at peak volatility.