Stock Market Options Trading 174: How To Trade Earnings Using Earnings-Watcher.com
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Jan 12, 2026 They break down volatility behavior around earnings and why earnings drive big market moves. The classic IV ramp up and post-release IV crush are explained. Historical move analysis and tools for measuring implied versus actual moves get attention. Strategies for long-vol and alternative structures are covered. Organizational tools, timing IV ramps, and curated trade idea selection are discussed.
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IV Crush Is Predictable; Stock Selection Is The Hard Part
- Earnings-driven IV crush is nearly certain and is the primary mechanic options traders exploit around reporting dates.
- Dan explains IV rises pre-announcement then deflates post-release, so the core question is selecting the right stock, not whether crush happens.
Netflix History Made Long Volists Rich
- Dan recounts trading Netflix many times where long-vol strategies often won while some traders were repeatedly burned.
- He notes Netflix historically blew the implied move frequently, making it a classic long-vol candidate in past cycles.
Use Historical Move Stats To Pick Long Or Short Vol
- Use historical moves data to judge whether a stock tends to beat implied moves and therefore suits long or short volatility strategies.
- Dan uses the Moves Analyzer to compare 10yr/5yr/2yr windows and check actual vs implied move frequency for decision-making.