【Coinbase's earnings report plummets, these three options strategies respond perfectly】

Coinbase released its Q2 results last Thursday after market close, with an EPS of only 0.12, far below market expectations. The next day, the stock price fell over 16% in a single day, reversing nearly a month of gains. Spot shareholders are in pain, but for options traders who positioned themselves early, this wave presents an opportunity.

📌 First Strategy: Buy Short-term Put

The day before the earnings report, the weekly options IV soared to 145, which seemed expensive, but the market only priced in a 6% volatility, resulting in an actual drop of nearly 17%. Buying the 330 Put that expires on the same day saw an intra-day increase of over three times, capturing the unexpected market move.

📌 Second Strategy: Bear Put Spread

Buy the 340 Put while simultaneously selling the 300 Put to lower costs and control risks. As long as the stock price approaches the middle of the range, steady profits can be obtained, suitable for conservative traders who are not greedy.

📌 Third Strategy: High IV Construct Risk-Reversal

Sell the 380 Call and buy the 320 Put for “zero-cost protection.” If the direction is correct, it's a net gain, and if wrong, the loss is manageable, making it a favored structure for many traders that combines offense and defense.

Currently, implied volatility remains high, suitable for taking profits, reducing positions, or rolling adjustments for new positions while waiting for the next wave of volatility events.

👉 Which strategy do you prefer to use for earnings report trading? Let's chat in the comments, and feel free to follow. #CoinbaseExchange.