Earnings Trades
Trade Potential Big Movers With Little Or No Down-side Risk
Earnings Trades For The Week Of – 12-30-19
Quick Take: Bullish – Earnings Trade
Time Frame: Three To Ten Days.
Underlying Stock: Bullish Market Edge Opinion – No Stock Position.
Desired Stock Price Direction: Up.
Option Position: Short Expiring ATM +2 Call – Long Deferred ATM Call (Credit Spread).
Maximum Risk: Initial Call Spread Debit.
Summary: The stock performs as anticipated. The short expiring ATM +2 call expires worthless and the long ITM deferred call gains additional premium.
Quick Take: Bearish– Earnings Trade
Time Frame: Three To Ten Days.
Underlying Stock: Bearish Market Edge Opinion – No Stock Position.
Desired Stock Price Direction: Down.
Option Position: Short Expiring ATM -2 Put – Long Deferred ATM Put (Credit Spread).
Maximum Risk: Initial Put Spread Debit.
Summary: The stock performs as anticipated. The short expiring ATM -2 put expires worthless and the long ITM deferred put gains additional premium.
Earnings Trades For This Week
Earnings Trades, If any are posted during earnings season On Monday through Thursday around 3:00 PM Est
Results for this week’s trades will be posted over the weekend on the Scoreboard.
This earnings season, use the Optionomics Earning Trades to take advantage of the price uncertainty that comes with earnings announcements without risking a fortune. The Optionomics Earning Trade is structured to allow you to make money off of the uncertainty in addition to price movement all while limiting your downside risk. Watch the video then download the booklet to learn how this works.