Today, I want to look at a trading strategy Earnings360 employs that deliver consistent returns over a four-day period without actually holding the position through the report. I refer to this as “Pre-Earnings Premium Expansion” (PEPE).
In 16-plus quarters, Earnings360 has executed 89 PEPE trades, achieving a win rate of 81% with an average gain of 27%.
This strategy leverages the implied volatility increase that precedes earnings; avoiding the actual event altogether. Just as PEPC is predictable, so is the pumping up of premium leading into the event; the basis for PEPE trades.
Learn more about the PEPE trading strategy.
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