In the days leading into an earnings report, implied volatility tends to rise as traders bid up options to hedge or speculate on the event. The IV Rush strategy is built to harvest that predictable run-up — without ever holding through the announcement.
How the trade works
- Our IV Rush Radar flags names where implied volatility is set to climb into earnings.
- Enter a delta-neutral position — typically a straddle or strangle — during the ~48-hour run-up window.
- Profit as rising IV lifts the option premium, independent of direction.
- Exit before the report, side-stepping the post-earnings IV crush.
The full record
The numbers tell a clear story: a solid 65.7% win rate, with the average winner (+7.1%) edging out the average loser (−5.8%). Because positions are closed before earnings, the tails stay tight — the worst trade was just −16.0%, a far cry from the open-ended risk of holding through a report.
From the community
Every IV Rush signal is forward-tracked in our Discord — posted before the outcome is known. A few member results from the run:
- @JC — 13 wins across 19 trades following the radar.
- @Bekim — a standout +27.4% on the JNJ run-up.
- @CLT-BRAD — a perfect 7-for-7 streak.
Frequently asked questions
What is the IV Rush strategy?
IV Rush is a delta-neutral trade that captures the rise in implied volatility during the roughly 48-hour run-up before an earnings report. You enter a straddle or strangle, profit as IV lifts the premium, and exit before the report to avoid IV crush.
What was the IV Rush strategy win rate?
Across 67 forward-tracked signals the win rate was 65.7% (44 wins, 23 losses). The average win was +7.1% and the average loss −5.8%, with the best trade +27.4% and the worst −16.0%.
Why exit before earnings instead of holding through?
Holding a long-volatility position through the report exposes you to IV crush, which usually destroys premium faster than the stock move can rebuild it. Exiting at the IV peak collects the repeatable part of the move and keeps losses small.