Event / Earnings Options
Directional into a print
What it is
Use calls/puts or spreads to play a directional view into an earnings or event date, sized for the expected move.
When it works
A directional lean into a dated catalyst. Compare the option's implied move to the stock's historical moves; debit spreads reduce IV-crush damage.
Why the setup pays
DTE is set to span the event with a buffer. Risk = Defined and Structure = Debit are deliberate — holding long options through a print exposes you to IV crush, and defined risk caps the damage if the move disappoints.
The market it wants
Earnings season. Earnings season; works in any regime but post-earnings drift is stronger in Expansion.
What goes wrong
IV crush after the print can lose money even on a correct direction if the move is smaller than implied.
Where it sits in the book
Event / Earnings Options belongs to Event Catalysts & Asymmetric Convexity, the group whose edge comes from tails of the distribution (extreme variance expansion). That group looks for massive event-driven shocks or catastrophic tail events, and its risk profile is bi-directional breakout, or extreme tail protection.
Run this on the live market
This is the thesis the engine scans with. It reads the whole universe, scores what matches, and prices the structures against fair value.
bull call spread into a beat-and-raise candidate, defined risk, expiry just past earnings
No account needed to run it. The free trial runs on the same live data a paid account gets.
Educational material, not investment advice. Nothing on this page is a recommendation to trade any security or structure. Options trading involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future returns.