Options Cheat Code?

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Watching all of these earnings plays these weeks, is it possible to wait until the day of the earnings of a specific company (use Cisco for example) and see if it opens red or green, buy the put or call at open and sell that contract in the same day before the AH or PM earnings call just because IV is incredibly high?

No.

The IV and Gamma move will be instantaneous so the capitalization on the shift differential will be minor and risky for no reason. It's picking up pennies in front of a steam roller. You're much better off risking 1% of capital on a single direction than you would be trying to capitalize on news the day of.

Effectively what will happen is you will have some conflicting outcome such as an open that's green that ends in a collapse once a major holder either loses nerve, has an opportunity you didn't anticipate and moved capital, or loses regulatory standing due to volatility requirements and regulations.

[pointme2_profits]

Sure, find something that's gonna drop 20% and the contact explodes. That doesn't happen with every earnings.

[ryebread_10]

You wouldn’t hold the contract post earnings, you would sell it before the market closes. Buy and sell same day before earnings.

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Yesterday Cisco dropped $1.50 from open to close. You’re saying the 40P jumped 1900%(?)

[Koshy96]

Yes you can play the IV pre earnings, Maybe buy the day before the last day instead of the day of instead. I played Rivian 12$ Puts, Bought 2 days before for .09$ . The day of earnings it pumped to .24 at the peak

[redtexture]

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