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We're a couple weeks into another unusual earnings season, with another month to go – and plenty more "earnings profit plays" for you to employ…
Now, I think most traders got the "shock" out of their systems last quarter, when companies announced some pretty weak numbers and, more than that, took guidance off the table for the foreseeable future.
This round, I imagine the reports will continue to be a mixed bag. The numbers could very well be better than last quarter overall – but I don't really need to bet one way or the other. The last thing I want to do is leave my hard-earned money at risk over a really uncertain outcome.
To be safe, investors can tighten up their trailing stops to prevent major losses from an earnings surprise. Like Intel Corp., falling 17% after announcing a delay in releasing new chips.
As traders, the best way to play earnings is to get in and get out before the "main event" – the earnings report itself.
Think of it like when a ticket scalper buys a block of tickets. Their tickets are much more valuable before the event actually begins. As soon as it starts, the value drops significantly. It's the same with an options contract.
When you do it right, you can double your money on earnings again and again – here's how it's done… Full Story