2 Defined-Risk Options Strategies to Trade Quarterly Earnings Without Gambling

Group 1 - The earnings season leads to significant market movements characterized by price gaps, volatility spikes, and rapid reversals, prompting traders to prefer options trading over direct stock transactions [1] - Barchart's options tools provide traders with a statistical edge by helping them understand the expected move priced in by the options market [1][5] - The expected move is calculated as 85% of the at-the-money straddle premium for the expiration date following the quarterly report, indicating the probable high and low price range for a stock based on implied volatility [3][4] Group 2 - The average earnings move reflects historical stock reactions post-earnings, allowing traders to compare current market expectations with past performance [6] - For Broadcom (AVGO), traders are anticipating a 6.15% expected move after the earnings report, which is significantly lower than the stock's average historical reaction of 11.87% over the last four quarters, suggesting modest expectations for the stock's performance [7]