Summary: We can consider trading [earnings](https://www.tastytrade.com/tt/learn/earnings) on both growth stocks and value stocks, but there may be a difference in the outcome. tastytrade's Research Team ran a study to see if this should alter our approach to these binary events. ### Study * Sold 16 [delta](https://www.tastytrade.com/tt/learn/delta) Strangles * 2010-Present * Approximately 3 DTE, only earnings trades * Compared value and growth companies ### Results * Value and Growth companies both had high win ratios and similar average P/L’s overall. * Growth companies did have a much larger max loss and they breached toward the call side more often. * Due to the high [volatility](https://www.tastytrade.com/tt/learn/implied-volatility) of earnings and potential for large losses, we strongly recommend defining your risk, especially in growth stocks.
