Earnings Play Strategy

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Exploiting predictable IV patterns around corporate earnings announcements

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Quick Reference

Strategy Type Event-Driven / Volatility Trading
Market Outlook Exploiting predictable IV patterns around corporate earnings announcements
Risk Profile Varies by structure - can be defined or undefined risk
Reward Profile Profit from IV crush, directional move, or combination
Time Horizon 1-14 days surrounding earnings announcement
Capital Requirement Moderate to High depending on strategy chosen
Margin Type Varies by structure - debit strategies require premium only
Best Used When Quarterly earnings season, stocks with liquid options, predictable IV behavior, clear pre/post earnings patterns

When to Use This Strategy

Quarterly earnings season, stocks with liquid options, predictable IV behavior, clear pre/post earnings patterns

India-Specific Notes

Lot Sizes

Reliance 250 units per lot
TCS 150 units per lot
HDFC Bank 550 units per lot
Infosys 300 units per lot
ICICI Bank 1375 units per lot

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