Earnings season is becoming important for option traders, with the focus on checking revenue growth, EPS, guidance and analyst estimates, and carefully assessing implied volatility and expiration dates.
Earnings season is said to have the potential to affect stock price movements and market volatility, making it important to check revenue growth, earnings per share, company guidance and analyst estimates.
When developing an options strategy, particular attention should be paid to implied volatility and expiration dates. One lesson highlighted is that high expectations may already be priced into option premiums before the announcement.