Far_Introduction527 t1_j9bzilo wrote on February 20, 2023 at 8:30 PM

Reply to comment by iWriteYourMusic in Just want to get to the carvana earnings s*** show by rocket_man19

Just wondering.if you can take advantage of a crush. (guessing only writing them then)

MustWarn0thers t1_j9ce260 wrote on February 20, 2023 at 10:05 PM

I think taking advantage of crush would be selling the options themselves, whether it be cash secured puts or share secured calls. Increased premiums.

iWriteYourMusic t1_j9csv8g wrote on February 20, 2023 at 11:49 PM

I would say you could buy the puts/calls a couple months before earnings and then sell the day before earnings report.

Far_Introduction527 t1_j9d92w5 wrote on February 21, 2023 at 1:52 AM

One thing I have always wondered is how soon do they price the options for an earnings?

Like how early do you need to do something like that? I love earnings plays, but when I KNOW it's gonna move SOME direction

AnimeCiety t1_j9du28h wrote on February 21, 2023 at 4:46 AM

Then you’re also dealing with time decay. You may not break even despite higher trending IV if time to expiry offsets.