PSX

PHILLIPS 66 COM (PSX) reports earnings Wednesday . Consensus EPS estimate is $2.05.

IV Rank is elevated at 65, indicating options premiums are pricing in a larger-than-usual move. This creates an edge for premium sellers — the IV crush after the event can be significant.

An iron butterfly at the money could be effective here. The defined-risk structure works well when you expect the stock to stay near current levels after the report.

Enter the position 1-2 days before earnings to capture the final IV ramp. Plan to close the morning after the report once IV collapses — don't hold hoping for further decay.