The Economic Times

US Stocks Today | Big Swings, Bigger Gains: Options traders cash in this earnings season

An options strategy buying straddles on U.S. companies ahead of earnings has yielded exceptional returns of 45% over the past four weeks, significantly outperforming historical averages. This success stems from heightened stock volatility following earnings announcements, driven by investor focus on economic navigation and company guidance, alongside previously subdued volatility expectations making options cheaper.