Most Traders Wait for Earnings Season to Sell Premium. The Data Says They're Waiting for Nothing.

Two studies this week from the Market Measures research team, and both of them have practical implications for how you pick your products and when you enter trades.

Study one: sector ETFs have surprisingly low correlation to each other, with the highest pair sitting at just 0.58. That means spreading across XLE, XLK, XLV, and XLU actually gives you meaningful diversification. Win rates across all sectors ran 70 to 84%, exceeding the 68% theoretical threshold. The old rule holds: when implied volatility is low everywhere, gravitate toward ETFs. Study two: the VIX does not spike during earnings season. Thirteen years of data, almost identical average VIX in earnings periods versus non-earnings periods. If you are waiting for a VIX boost to sell ETF premium during earnings, you will be waiting a long time.

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CHAPTERS:
00:00 Weekly Recap: Two Studies This Week
00:28 Study 1: Sector ETF Correlation and Options
01:00 ETFs Have Low to Moderate Correlation
01:22 Highest Pair: XLF and XLE at 0.58
02:34 Top 5 Holdings Per ETF: 0.27 Cross-Correlation
03:00 XLK Top Holdings: Nvidia, Microsoft, Apple
03:25 XLF Rarely Has Enough Options Premium
04:15 Win Rates 70 to 84% Across All Sectors
06:15 Low Vol Rule: Gravitate Toward ETFs
06:38 Study 2: Is VIX Inflated During Earnings?
07:30 Only 2 More VIX New Highs During Earnings
08:12 VIX Is Priced Off SPY: Earnings Get Diluted
08:46 Same Average VIX in Earnings and Non-Earnings
09:04 Individual Stocks Still Get 70% IV Expansion
09:50 Myth Debunked: Final Takeaway

#marketmeasures #optionstrading #financialeducation #etfinvesting #impliedvolatility #optionsforbeginners #vix #earningsoptions #sellingoptions #tastylive

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