I am planning on paper trading some IV rush ( the build in IV before earnings) I am just in the testing so I selected 3 stocks with earnings next week and another 3 with earnings two weeks out just to see how far out to go. I bought 1 ATM (currently) option in the earnings expiration series.
I also placed some straddles on the same stocks and expirations as the singles. I know the Greeks and understand I will have an issue with Theta and have to hope the Vega beats the Theta. Of course, I will never go live until I have a thorough understanding of it.
My questions are:
1) Have you found a better approach? 2) Does anyone have a reliable free learning resource that is useful?
Any tips for trading the IV buildup prior to earnings? I am going to paper trade them this season.
byu/Status-Property-446 inoptions
Posted by Status-Property-446