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Trading Earnings with Options
Learn to profit from earnings announcements with proven options strategies that account for IV crush and price gaps.
ApexVol Terminal
Options analytics, live.
Chains, IV rank, expected move and dealer positioning for 5,500+ US stocks and ETFs.
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On this page
- Written by
- ApexVol Research Team
Quantitative options research. All calculations use live institutional-grade data — the same source professional volatility desks use. - Reviewed by
- Ryan Silk, ApexVol Founder
Reviewed for technical accuracy. 10+ years trading options; built ApexVol's pricing engine, Greeks model and IV-rank methodology.
Revised as market conditions and institutional data change. Last revised 2026-05-12. How we research →
What is Trading Earnings with Options?
Trading Earnings with Options Earnings trading involves positioning options around quarterly announcements when implied volatility peaks and stocks often make significant moves.
Understanding IV crush, historical move patterns, and proper strategy selection is crucial for consistent earnings trading profits.
The options market prices an 'implied move' into earnings via the at-the-money straddle — to profit from a long premium trade, the stock must move more than that.
ApexVol Terminal
Options analytics, live.
Chains, IV rank, expected move and dealer positioning for 5,500+ US stocks and ETFs.
- Live chains and Greeks
- IV rank and percentile
- Expected move and GEX
- Screener and strategy P&L
Free on AAPL, no account. Trial: no charge if you cancel before it ends.
How this event behaves
- IV behaviour
- Spikes 50-200% before, crashes 30-70% after announcement
- Typical frequency
- Quarterly (4x per year per stock)
- Timing
- Usually after market close or before market open
- Best setups
- High IV rank stocks with history of big moves
- Risk factors
- Gap risk, IV crush, unpredictable direction
The Expected Move Formula
Calculate the market's expected move: Expected Move = ATM Straddle Price / Stock Price
If the straddle costs 8% of the stock price, the market expects an 8% move. You need a larger move to profit on long straddles.
Sell Premium When:
- IV rank is very high (>80%)
- Stock historically moves less than expected
- You expect the stock to stay range-bound
Buy Premium When:
- IV is relatively low for the stock
- Stock has history of exceeding expected moves
- You have a strong directional conviction
At a glance
Pick the structure
that matches your read.
The same event supports four different views. Each row links to the full guide for that structure.
| Outlook | Strategy | Description |
|---|---|---|
| Bullish | Bull Call Spread (post-earnings) | Buy after IV crush if bullish |
| Bullish | Calendar Call | Benefit from IV differential |
| Bearish | Bear Put Spread (post-earnings) | Buy after IV crush if bearish |
| Bearish | Calendar Put | Benefit from IV differential |
| Neutral | Iron Condor | Sell premium, profit from IV crush |
| Neutral | Iron Butterfly | Max profit if stock pins |
| Neutral | Short Straddle | High risk, high reward premium selling |
| Volatile | Long Straddle | Profit from big move either direction |
| Volatile | Long Strangle | Cheaper than straddle, needs bigger move |
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See where this event
is priced right now.
The guide above is the framework. These modules put today's numbers behind it, on AAPL or any ticker you follow.
Questions
About trading this event.
What is IV crush in earnings trading?
IV crush is the rapid decline in implied volatility immediately after an earnings announcement. Because IV rises before earnings due to uncertainty, it collapses once the news is known. This can cause options to lose 30-70% of their value overnight.
Should I buy or sell options before earnings?
Selling options benefits from IV crush but has risk if the stock moves more than expected. Buying options requires a move larger than the implied move to profit. Most professionals sell premium before earnings due to the statistical edge from IV crush.
How do I calculate the expected move for earnings?
The expected move equals the ATM straddle price divided by the stock price. For example, if a stock is $100 and the ATM straddle costs $8, the expected move is 8%. You need the stock to move more than this to profit on long volatility plays.
Keep reading
The structures
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The Earnings and Events module lists the dates ahead with the implied move, the moves that actually landed last time and the IV ramp into each one. A free account runs it on AAPL with no card.
Real market data, not a sandbox. Open Earnings and Events on AAPL.