AFBI Earnings Date & Options Strategy

Buy Options Strategy

Buy options when IV percentile is below 30. This means options are cheap relative to their historical pricing. As earnings approach, IV typically rises (IV expansion), increasing the value of your options even before earnings.

Sell Premium Strategy

Sell options when IV percentile is above 70. After earnings, IV crashes (IV crush), which benefits option sellers. Iron condors and credit spreads profit from this IV collapse.

Timing Tips

• 2-3 weeks before: Best time to buy options if IV is low
• 1 week before: IV starts rising, still okay to buy if IV < 50th percentile
• Day of earnings: IV at peak - avoid buying, consider selling
• After earnings: IV crushes 30-50%, sellers profit