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Leveraging Options During Earnings Season

Barron's Live

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What Does This Mean for You as an Investor?

Justin Navarrette: There's a lot to think about, right? So it's either up or down. What does this mean for you as an investor? Well, risk management. If you're into a stock and you don't have much cushion, then if you're looking at an implied volatility that's high with an expected move that's at 10% or more, well, that might be more risk than you want to take on. On the other hand, maybe it takes away your profits, but it doesn't really take away your capital. Maybe you can hold through earnings.

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