Right Direction, Wrong Trade: The Earnings Trap

About this episode

This episode discusses how traders can lose money on option trades despite correctly predicting stock direction after earnings due to volatility shifts.

Even when traders correctly predict a stock’s direction after earnings, option trades can still lose money due to volatility shifts and pricing expectations. In this episode, Jeff Praissman sits down with Market Chameleons’ Dmitry Pargamanik and Will McBride to explore how implied volatility, magnitude of moves, and historical data shape earnings strategies.

People in this episode

Host: Jeff Praissman

Guests: Dmitry Pargamanik, Will McBride

Topics covered

• earnings strategies
• option trades
• implied volatility
• market analysis
• trading risks

Keywords

• earnings trap
• option trading
• volatility shifts
• trading strategies
• historical data

Mentioned in this episode

Organizations: Market Chameleons

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