is....UP! Cannot remember this happening after the earnings (no matter how bad the report was). I am sure it happened, but I personally never saw it before. I guess "event" is not over yet... We will find out soon.
I think 550 was 2 StDev away from ATM (3% HV wise) But since there was an earnings, maybe 1StDev away (IV wise). Nice one.
It's not that amazing, or stupid or foolish. Everything in the market is priced accordingly to risk vs reward. So a buyer gambler trader is paying accordingly for that opportunity potential probability. The key in trading is knowing your shit, though, and not wasting your account trade after trade on a gambling blind hope
But we don't know what his entire position was. Maybe he had 5000 shares to keep the trade delta neutral? And he posted a winning leg ONLY. Because if he had shares, the other leg would lose 650k. Now going overnight will implied straddle that cost only 4.1% is truly a great trade, 550% gain, no direction needed!
It's very very rare a stock will move 22% in a day. A trader can't truly win with that perspective. I wonder what his overall account history line looks like though. Those WSB bets on options quarterly earnings are just that, bets.