Earnings season delivers some of the largest stock moves you’ll face in the market — bringing both unique risks and opportunities. Learn how SpotGamma’s tools can help you trade earnings by measuring options-implied moves, evaluating volatility crush potential, and visualizing options market positioning.
What You’ll Learn:
- Understanding Gamma and Earnings Volatility – (00:00:46 – 00:02:22)
Introduction to gamma as a measure of realized volatility compression or expansion, distinct from directional bias, and its critical role during earnings season when implied volatility peaks. - Optimal Earnings Trading Strategies: Selling Premium Over Buying – (00:04:18 – 00:06:39)
Why elevated implied volatility makes buying options expensive; selling strategies like spreads, iron condors, and covered calls offer better risk control, especially for earnings events. - Using Implied Move and Standard Deviation to Gauge Expected Price Range – (00:08:56 – 00:13:38)
How traders use at-the-money straddles to estimate the implied move range, relating price moves to volatility through standard deviations and delta, enhancing probability and risk assessment. - Volatility Term Structure and Skew Analysis in Real Stocks: Meta, JP Morgan, NVIDIA – (00:27:04 – 00:45:38)
Examination of term structure volatility revealing volatility crush patterns; skew insights show directional biases or neutral market expectations, guiding premium selling and directional trades. - Real Stock Case Studies and Gamma Positioning: NVIDIA and MU Earnings – (00:34:17 – 00:53:16)
Detailed review of NVIDIA’s May earnings showing gamma support levels and expected moves; MU’s earnings demonstrate strong positive gamma positioning and supply-demand influences on price action. - The Importance of Earnings Calendars and Sector Correlation for Trade Planning – (00:22:12 – 01:00:40)
Challenges with earnings calendar accuracy recommend cross-referencing multiple sources; sector correlations (e.g., banks, airlines) provide strategic insights for trading earnings season and thematic rotations.
