AAPL Earning dates vs Implied volatility behavior

Last 4 quarter AAPL earnings report release date:

IV_RV_AAPL_earningdates

AAPL Daily chart
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IV_RV_AAPL

Observation
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(1) No matter beat or miss, we are not sure if the share will gap up / gap down / trend slowly. No guarantee.

(2) No matter beat or miss, Implied Volatility will be high a few days before the earning date.

(3) No matter beat or miss, the gap between Implied volatility and Realised volatility will narrow back after earning date.

Thus a more viable strategy will be to trade the spread between IV and RV, instead of trying to predict whether the stock will gap up or gap down.

Thus volatility arbitrategy trading makes more sense than trend or counter trend trading during earning announcement dates.

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