Earnings Season Fortune Teller? Fuggedaboutit!
Bearish on earnings?
Bullish on earnings?
If so, why?
Do you have access to information that is beyond professional analysts?
You do realize that no one has a crystal ball, therefore can’t predict where a stock is headed after earnings. It’s a fact, right? Well . . . unless you believe in fortune tellers.
There is a far better approach to trade earnings. It’s an earnings season approach that doesn’t require leaning bullish or bearish. Just look at how our earnings season approach has fared in 2020.
What about our earnings season approach over the long term?
Since we initiated the strategy back in October 2017, the strategy has a total return of 879.5%. That’s right, 879.5%.
We know that implied volatility increases dramatically on a stock ahead of earnings. It happens every time. Due to the uncertainty around a stock’s earnings announcement, demand for protection and speculation increases dramatically. The increased demand increases implied volatility and inflates the price of the options. It is a known fact.
As a result, we have the ability to take advantage of the heightened volatility through a variety of different steps . . . steps that I will discuss in detail in my upcoming webinar.
Now, the basis of my strategy is simple.
I take advantage of known factors that occur prior to earnings announcements. (Click here to learn how.) These are factors that occur every earnings season and are completely predictable.
Just look at the three charts below for Netflix, Amazon and Walmart. You will notice a common occurrence highlighted in red.
The common occurrence: an increase in volatility that builds leading up to earnings, followed by a dramatic drop immediately after earnings are released.
We place a trade when volatility is high (and receive more income as a result) . . . and then exit the trade after earnings are announced when volatility plummets. It’s that simple.
Of course, there are other factors that come into play as well. But they are easy to navigate once you learn how.
On Tuesday I will be discussing in detail how I make these one-day trades around earnings season. I will show you the step-by-step process, so you have the opportunity to make the same trades with similar results.
REGISTER HERE – Get all the details at my FREE live training.
I hope to see you all there.