Trading Earnings With Options (My Favorite Strategies & Examples)
projectfinance projectfinance
449K subscribers
128,530 views
0

 Published On Feb 19, 2020

✅ New to options trading? Master the essential options trading concepts with the FREE Options Trading for Beginners PDF and email course: https://geni.us/options-trading-pdf 💰 Get up to $3,000 when you open and fund your first tastytrade brokerage account: https://geni.us/tastytrade
🔥 Learn data-driven options strategies: https://optionsforbeginners.teachable...

Publicly-traded companies report their earnings results each quarter, and the option markets price in a potential jump in the stock price due to the release of the earnings news. The earnings conference call can also cause the stock price to move significantly if the company reports any unexpected news about the company's operations.

Earnings announcements can provide great options trading opportunities with virtually instantaneous results, as a big movement in the stock price overnight can lead to huge gains when buying options through earnings.

Conversely, a non-movement in the stock price can lead to huge options trading profits when selling options through earnings, as the short-term volatility priced into the near-term options will get sucked out of the options after the earnings report passes.

In either case, there are opportunities for options-selling and option-buying opportunities through earnings.

In this video, I share specific information related to trading options through earnings announcements, including:

1) How to analyze the expected earnings move of a stock by looking at the options

2) A useful tool/website I use to analyze the historical earnings movements of virtually any stock you'd like to trade for earnings

3) My favorite options strategies to use for trading earnings for two different stock movement characteristics (big movers and inside movers)

4) Backtests and visualizations of earnings trades using the OptionNET Explorer software

There's a ton of information in this video and I hope you can find some of it helpful in regards to your own trading.

But be warned, trading earnings is essentially gambling because we are making trades based on unknown information that can send the stock price soaring or tumbling, or nothing could happen at all. Depending on the options strategy implemented, the stock price outcome could lead to big profits/losses overnight.

=== LINKS / RESOURCES ===

OptionNET Explorer Trade Analysis Software: https://www.optionnetexplorer.com

Buy a Trial of OptionNET Explorer (w/ Discount): https://www.optionnetexplorer.com/Pay...

OptionSlam Earnings Analysis Website: https://www.optionslam.com/

=== RECOMMENDED VIDEOS ===

Stock Options Trading 101:    • Stock Options Trading 101 [The ULTIMA...  
Iron Condors Explained:    • Iron Condor Options Strategy (TUTORIA...  
Implied Volatility Explained:    • Implied Volatility Explained (The ULT...  
Why Early Exercise/Assignment is Rare:    • Early Options Assignment Risk (When t...  
Options Trading For Beginners (PLAYLIST):    • Become an Options Trading PRO (Option...   tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Project Finance(Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’ brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies. Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website. Marketing Agent is independent and is not an affiliate of tastytrade.

show more

Share/Embed