For a conservative scalper in options, this is a quick way to lose money. You are trading in a ranging market on a four hour chart. You buy options right before earnings because you predicted the direction. But the market does not care about your prediction. The stock gaps open wildly, blowing through your tight scalping stops. Your premium evaporates due to implied volatility crush. You did not make a trade. You bought a lottery ticket and called it analysis. (2/4)

You cannot predict earnings. You can only prepare for volatility. The outcome is a coin flip, but the volatility spike is a guarantee. Advanced traders know this. They do not try to predict the news. They structure trades that profit from the market's reaction, not their guess. In a ranging market, that often means selling premium to capitalize on that volatility crush, not buying it. Thinking you know what will happen is the most expensive mistake you can make. (3/4)