1
Why events move options
Before a known event, implied volatility rises as traders pay up for protection. After the news, IV often collapses — the "volatility crush" — even if the stock moves.
2
Expected move
Options prices imply how far the market expects a stock to move by a date. If the actual move is smaller, option buyers usually lose.
3
Separate the headline from the move
A stock can fall on good news if expectations were higher. Rebel Intel only cites headlines it actually found from wires like Reuters, CNBC and MarketWatch.
Common mistakes
- Buying options right before earnings without checking IV.
- Trading the first headline before the full report is read.