How to Profit from IV Crush in Earnings Season?

During earnings season, IV Crush refers to the sharp decline in implied volatility (IV) after a company's earnings report. Before earnings, IV rises due to uncertainty about the outcome, causing option prices to increase. After the earnings release, this uncertainty dissipates, leading to a rapid drop in IV. This decline impacts options prices, often causing them to decrease even if the stock price moves favorably. ----------------- How to take advantage of IV crush in earnings season? Share your experiences!

avatarLaiken
12-16
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avatar2024贏
12-14
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@TigerGPT vega future

The Leader Is Back! How Should We Approach Options Strategies Now?

The leader of American retail investors, Roaring Kitty, is back with a post! He shared an image inspired by the cover of Time magazine, featuring a blank computer screen resembling a YouTube media player. This seems to be a modified version of Time's December 25, 2006, cover, when "You" (the American public) was named Person of the Year.Since the post didn’t include any explanatory text, day traders quickly began speculating. For example:Unity Software (ticker: U) surged by as much as 8.2% intraday before closing up 4.9%.Clear Secure (ticker: YOU) reversed its earlier 4.6% decline but ultimately fell 1.1%.As a classic meme stock, GameStop (ticker: GME) soared 14% at one point before giving up most gains, closing up 5.9%. Another popular meme stock from the same era, AMC Entertainment (tick
The Leader Is Back! How Should We Approach Options Strategies Now?
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11-28
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A both Risk-on & Risk-off Strategy, will you follow?

The single-leg 60,000-count, 120,000-count total of large orders from $Reddit(RDDT)$ which surged after its recent earnings report, wereSell Call of 220 due Jan 15, 2027 at 41.48Sold Put of 115 due Jan 15, 2027 for 32.48A typical inversed straddle strategy.The magic is, used in the 2027 options, expiration is still two years, the time span is very large, and choose the relative out-of-the-money price, in other words, he prefers to profit through the value of time, there is a certain "interest-eating" nature.But the bold and is the use of options seller, once the stock price breaks through the upper or lower limit, there may be a large loss.Let's do the math for him:The margin on the recently expired Reversed Straddle is relatively low, and at his
A both Risk-on & Risk-off Strategy, will you follow?
avatarTiger V
11-13

Investment Reflection: Put Option Strategy on C3.ai, Inc.

Overview of Strategy On November 12, 2024, I implemented a put-selling strategy on C3.ai, Inc. (AI) by selling a put option with a strike price of $20, expiring on December 20, 2024. At the time of selling the put, C3.ai's stock price was $27.28, and I collected an option premium of $26. The strategy was based on C3.ai's recent stock performance, upcoming earnings, and a willingness to acquire shares at a discounted price if assigned. Analysis of C3.ai’s Recent Performance and Market Sentiment C3.ai, Inc. operates in the artificial intelligence software sector, providing AI and machine learning applications across various industries. The company's stock is often subject to high volatility, driven by market sentiment toward AI technology and C3.ai’s financial performance. Stock Performance:
Investment Reflection: Put Option Strategy on C3.ai, Inc.

How Tesla Traders Are Betting On Robotaxi Event?

The upcoming Robotaxi AI Event on October 10th is seen as key to $Tesla Motors(TSLA)$ future growth; after all, Tesla has been sluggish so far this year and has faced problems on different fronts such as overvaluation, declining margins, executive departures, and Musk's personal behavior.The importance of the Robotaxi AI Event is that it could open up a multi-trillion dollar AI market opportunity.Current market expectations include:The latest Fully Self-Driving (FSD) technology, expected to be FSD v12.5, emphasizing Robotaxi's ability to handle complex traffic situations without human driver interventionDriving the commercialization process, by showcasing Robotaxi in real-world scenarios, Tesla hopes to attract investors and partners, which is a n
How Tesla Traders Are Betting On Robotaxi Event?

How Option Investors See PDD

$PDD Holdings Inc(PDD)$ plunged the second day, on the one hand, the analysts of large banks have felt that the current plunge is a little over the top, the camel is bigger than a horse, on the other hand, the institutions also take the lead in the wildly throw, after 30 points may as well fall 10 points, hard to the management on the lesson. $Morgan Stanley(MS)$ : Who said long-term profitability is down? $Citigroup(C)$ : management's self-defeating expectation management, and it's only going up when the bearishness is out of the way $Goldman Sachs(GS)$ the target price has not yet taken into account the valuation of Temu .....
How Option Investors See PDD

Decoding NetEase's Financial Options Game through Black Myth: Wukong

"Black Myth: Wukong" has taken the global gaming market by storm, breaking records across all platforms. According to the national game sales rankings, it has sold over 3 million copies on Steam alone, with total sales exceeding 4.5 million copies and revenue topping ¥1.5 billion. High expectations for "Black Myth: Wukong" were highlighted by Goldman Sachs, which called it a significant turning point for the Chinese console game industry and a key step for Chinese games on the global stage. This success may spur increased investment in Chinese games, especially in the 3A category.Goldman Sachs believes that $TENCENT(00700)$ $Tencent Holding Ltd.(TCEHY)$ and $NTES
Decoding NetEase's Financial Options Game through Black Myth: Wukong
avatarPommesy
07-31

Guess the winner,Earn Tiger Coins

Find out more here: Guess the winner,Earn Tiger Coins Join the Guessing Game , find high-yield Sharers! Win up to 50000 Tiger Coins.
Guess the winner,Earn Tiger Coins

TIGER ROARS, DECADES SOAR.

Find out more here:TIGER ROARS, DECADES SOAR. Join me to discover exciting features with me on Tiger Trade & win $1,010 worth of rewards!
TIGER ROARS, DECADES SOAR.
I had been buying $Sea Ltd(SE)$  since it dropping. I have faith and confidence in this company. The 3 business models for gaming, e-commerce and digital banking are making profit now. Therefore, I do not see why the stock price will not be going up. You must keep for long term and you can see the price shot to the moon. None of its competition is new. SEA is the dominant player in its markets, of course it won't grow as fast as someone just starting out and burning billions! SEA has challenges, certainly, will require patience no doubt, but as a long term perspective, I don't see how not to be long on SEA. I will keep buying. Great long opportunity. My target price is $80 by end of Aug 2024.
avatarTiger V
05-31

Investment Reflection: Selling a LEAP AI Cash-Secured Put Option

Overview On May 10, 2024, I executed an options strategy by selling one LEAP AI $C3.ai, Inc.(AI)$  cash-secured put option with a strike price of $22.50 and a maturity date of September 20, 2024. This strategy allowed me to collect a premium of $297 upfront. The position was closed on May 30, 2024, for $135 after AI stock surged to $28.57 following its earnings announcement. This investment reflection outlines the rationale, execution, and outcomes of this strategy. Strategy Rationale Selling a cash-secured put option was chosen for its potential to generate income while taking on limited risk. Here’s why this strategy made sense: 1. Income Generation: By selling the put option, I received an immediate premium of
Investment Reflection: Selling a LEAP AI Cash-Secured Put Option

Why Did Excellent Earnings Not Match Excellent Return?

$PDD Holdings Inc(PDD)$ 22nd pre-market earnings report , revenue +131% y/y, the highest growth rate in 21 years, 13% above the market consensus estimate, gross margin of 62%, 5% above the market estimate, net profit growth of +200%, 97% above the market consensus estimate.But the stock opened higher and stayed below 150 that day, and the options were even more IV Crush, with almost all Calls and PUTs due that week discounted.No coincidence, the pillar of the U.S. stock $NVIDIA Corp(NVDA)$ also announced earnings after the 22nd session, revenue +262.1% year-on-year, exceeding market expectations by 5%, of which the data center business +426.7% year-on-year; net profit +628% year-on-year.Pre-market gains ar
Why Did Excellent Earnings Not Match Excellent Return?