How much should I cut my position before earnings to cut my risk in half?

How this is calculated

• The dollar amount to trim equals your current exposure multiplied by the percentage you want to cut.
• This is proportional math only. It doesn't know your specific position type, shares, contracts, or spreads, so translate the dollar figure into whatever unit your position is actually held in.
• Earnings, FDA decisions, and other binary events can move a stock far outside its normal range in either direction. Cutting exposure ahead of the event reduces what an unfavorable outcome can cost you. It does not improve the odds of the outcome going your way.
• If you're holding options through the event, also check the earnings options checklist below for the qualitative side of this decision, not just the sizing math.