【META Earnings Report Violently Gaps Up: Naked Selling Blood Loss vs. Double Buying Full Capture】

Last night, after META released its Q2 earnings report, the stock jumped more than 11% in after-hours trading, with prices briefly reaching $775. The options market experienced intense volatility. Traders in the group engaged in heated discussions a few hours before the earnings report:

🔹 Some chose to sell 750C and 650P, betting on an IV collapse to collect premiums;

🔹 Others set up double buys in advance, looking at the possibility of large fluctuations post-earnings;

🔹 A more conservative strategy involved using spreads (Vertical or Iron Condor) to control risk.

In the end, the naked selling direction was misjudged, with the Call side going deep ITM, making it difficult for premiums to cover losses; meanwhile, those who had set up double buys in advance successfully captured the entire gap move.

This is a typical combination of high IV + earnings report betting, and the outcome often depends on whether the strategy matches the volatility structure.

📌 Double selling during earnings periods may not be safe, especially against the backdrop of amplified directional volatility;

📌 Setting up double buys in advance can allow for ambush opportunities during low IV phases;

📌 Using spreads is conservative but risk-controlled, making it more suitable for oscillating market expectations.

META's case is a standard example of "high expectations realization + violent gap" in earnings report betting. Join our <options strategy> group to analyze volatility, break down the market, and capture opportunities. #meta