Earnings get labeled as gambling a lot, but I don’t think that’s accurate by default.
There’s money on both sides of earnings.
Buyers can win. Sellers can win, but only if they understand the risk.
The problem I see most often isn’t direction, it’s structure and expectations.
Getting the move right and still losing because:
•Premium was overpriced
•IV collapse did more damage than price helped
•The structure didn’t match the thesis
Curious how others here approach earnings:
•Do you usually play them or avoid them?
•If you play them, are you mostly a buyer or seller?
•What’s the biggest mistake you’ve learned the hard way?