Trading Earnings Strategically Using Options (Part 2)

[@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.