[META earnings report violently gapped: naked shorting Rekt vs dual buying to the max]

After META announced its Q2 earnings report last night, it jumped over 11% in after-hours trading, with the stock price briefly reaching 775 dollars, causing a sudden and intense fluctuation in the options market. Traders in the group engaged in heated discussions a few hours before the earnings report:

🔹 Some choose to sell 750C and 650P, betting on the collapse of IV to collect premiums;
🔹 Some people also preemptively position themselves for a double buy, focusing on the potential for significant volatility after the financial report.
🔹 A more robust strategy is to control risk using spreads (Vertical or Iron Condor).

In the end, the naked sellers misjudged the direction, and the Call side went deep ITM, making it difficult for the premium to cover the losses; while those who positioned early as double buyers successfully capitalized on the entire gap.

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

📌 Selling during earnings reports may not be prudent, especially against the backdrop of amplified directional volatility;
📌 By laying out double buys in advance, you can ambush during the low IV phase.
📌 Although making price differences is conservative, the risks are controllable and it is more suitable for a volatile market scenario.

META is a standard case of "high expectations fulfillment + sharp gap" in the earnings report game. Join our group to analyze volatility, dissect the market, and seize opportunities. #meta