How much should I cut my position before earnings to cut my risk in half?
Enter Your Position and Target
Your Result
Fill in both numbers and click Calculate Trim to see the dollar amount to remove.
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.
Risk & liability disclaimer: This calculator produces a mathematical estimate based on the numbers you enter. It is not financial advice and does not guarantee any trading outcome, including how a stock will react to an earnings release or other event. Trading involves risk of loss. Trading Habits is not a broker-dealer, registered investment adviser, or tax professional, and is not affiliated with any broker, exchange, or data provider. Always verify results independently and consult a licensed professional before making any trading or financial decision.
Size Down Before the Event, Not After
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