Today marks the largest number of U.S. companies reporting earnings and speculation for these earnings are running wild.

Earnings-ReleaseI typically only play earnings one way. I look for the highest speculation which translates into high implied volatility (IV). By looking for high IV on the day of earnings (those companies reporting after the bell today) I want to look at taking advantage of this high IV and sell that increased premium. By selling options with higher than usual premium and buying back the option after earnings on the “volatility crush” or allowing the options expire out of the money.

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