Chat With Traders

301 · Erik Smolinski - Trading Earnings Volatility with Options

Jun 19, 2025
Erik Smolinski, a Marine veteran and accomplished options trader, shares his insights into the world of trading, particularly focused on earnings volatility. He delves into debunking myths around options trading, emphasizing adaptability and consistency. Erik discusses strategies like calendar spreads, the importance of understanding implied volatility, and the psychological aspects of trading versus equities. He also explores the innovative blend of AI in trading and the rise of prop trading firms, offering valuable tips to enhance profitability and confidence in one’s trading journey.
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INSIGHT

Options Trading Simplified by Process

  • Trading options becomes simpler once you appreciate how derivatives behave beyond short-term outcomes.
  • Understanding market behaviors and focusing on process over individual trade results reduces frustration.
ADVICE

Key Traits for Options Traders

  • Be process-driven and humble when trading options; tolerate ambiguity and manage ego.
  • Avoid impatience and outcome fixation to survive the long-term volatility of options trading.
ANECDOTE

Pre-Earnings Calendar Spread Example

  • Tessa shared her pre-earnings calendar spread strategy around JPM earnings with volatility considerations.
  • Erik noted it captured a known market effect of IV ramp-up before earnings but cautioned about attributing good or bad news to non-earnings events.
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