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Earnings Season Is Here… Find Out How To Trade It

Earnings Season is indeed upon us. Recently, I hosted a webinar detailing the Earnings360 approach to trading earnings reports. During the event, I explained my process and revealed the strategies that led to the Earnings360 service-producing consistent profits for 16 out of 17 quarters in the past four years. 

Honestly, even under ideal circumstances, earnings can be extremely tricky to trade, with many moving and unknown parts. Will the company miss or beat expectations? What will be the guidance? Will traders “sell the news,”  or buy into “the unknown,” believing the recent decline has priced in a near-worst-case scenario?

However, there’s one predictable pricing behavior that savvy option traders use to make steady profits.  Given all the recent volatility and numerous unknowns, options premiums will be at record-high levels as market-makers must price options for outsized moves.

So, how do you trade earnings in a world without guidance? Here’s a quick guide that rests on taking an options-centric approach.

The post Earnings Season is Here… Find Out How to Trade It appeared first on Option Sensei.