FactSet notes that 72% of S&P 500 companies beat Q2 earnings estimates, while 19% missed expectations. This means only 9% of companies reported results that were in line with analysts' estimates. Given the high number of surprises, both bullish and bearish, it's no wonder we see increased volatility (i.e., big stock moves) during earning season.

Yet, despite the opportunity for quick gains from post-earnings moves, many investors shy away from trading around earnings reports. Their reason is simple: It's risky.