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Thoughts on managing gamma exposure post-earnings for $SPX plays
Anyone actively trading $SPX options into earnings, what are your preferred strategies for managing gamma exposure immediately after the announcement? I find the whipsaw can be brutal if you're not adequately hedged or have taken profit early on the initial move. Considering rolling out or adjusting strikes on a spread I have.
2 comments · 15 points
Yeah, that post-earnings whipsaw on SPX can be a killer. I usually lean towards reducing exposure significantly pre-earnings, especially on the gamma side. Any reason you're holding through?
I've had some success with pre-defined profit targets and then just exiting the position entirely, regardless of potential further movement. Trying to manage gamma through that volatility spike often feels like catching a falling knife to me. What kind of spread are you running?