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Trading Earnings with Long Options: Straddles & Strangles (10-6-26)
How to use long straddles/strangles to trade volatility around earnings, manage time decay, and evaluate candidate stocks when direction is uncertain.
Editorial companion
What stands out
Connie Hill walks through how long straddles and strangles let traders bet on big moves around earnings without predicting direction, and she shows practical tweaks to reduce time decay and cost. The session focuses on the trade mechanics, how to size strikes, when implied volatility makes an option buy attractive, and what to watch in the days before a report. The most useful moments are the concrete rules of thumb for deciding when an option buyer has the odds on their side versus when the premium is too expensive.