Trading Earnings Strategically Using Options (Part 2)

optionalpha.com - In this video I analyze the results of the trades made in the first earnings video, adjust my strategy and make 2 new earnings trades for next week using the updated earnings tool in Option Alpha. I also place a trade in Trade Ideas using the new Max Pain chart.
Check out the rest of the Options Trading 2.0 playlist in which I set up and trade a $10K account from scratch:
• Options Trading 2.0
- These trades are my own personal trades not trading advice.

[@Virtues162]

A Legend grapples with Earnings Trade !!

[@chansmusic2969]

I feel like taking bi-directional trade against earnings is simply unprofitable. Even thought you had setup a 4:1 risk reward ratio expecting a 25% win rate.
The fact that losing capital requires 2x the growth to get it back (losing 50% gainz requires %100 gainz to get it back), the EV of the di-directional option bets will approach 0 in a longer run, maybe look into delta hedging activity as a result of stock price movements. Just my two cents here, curious to hear your thoughts.