Senior Investment Advisor at Ais Market Cap
Most retail traders buy right before earnings and get destroyed by IV crush. The fix is simple and counterintuitive: buy early, ride the momentum build-up, and sell before the call. The IV Crush Problem When you buy close to earnings, you're paying peak implied volatility. The moment the announcement lands — beat or miss — IV collapses. That crush eats your position even if the stock moves your way. You're fighting a built-in headwind. Before earnings, IV is low. As the date approaches, it builds. That rise in IV causes traders to buy calls, hedge with stock, and push the price up. Get in early and you're riding that wave for free. The Strategy: 1-45 Days Out The sweet spot is 1-45 days before earnings. Early entry means lower premium, more time to build position, and you're sellin...