Course · Act III: Theta Gang · Act III case study
Selling options into earnings
Case: sell a put into earnings. Read the expected move, size a cash-secured put against a credit spread, take a gap past the priced-in move, and pick the covered call that turns the wheel.
Key terms
- Volatility risk premium
- The tendency of implied volatility to run above the volatility that follows. What option sellers are paid for, until it isn’t.
- Selling into earnings
- Shorting options before a report to collect inflated premium. Wins on a small move; the gap is the risk.
“Selling the Print” is part of the full course: 6 puzzles on selling options into earnings. RocketCo is fictional, and none of this is a trade. Try this act’s free chapter, “Covered Calls”, first.
“Selling the Print” is in Act III: Theta Gang. 6 puzzles, unlimited retries.
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