| GUEST POST: TOM BUSBY
The Weirdest Way to Trade Earnings
I bet you didn’t realize ONE key thing about earnings:
And don’t feel bad when I tell you this…
Because even seasoned pros have gotten this wrong when I’ve asked them about it.
Here goes:“Earnings season” isn't a season.
It’s true. Most traders talk about “earnings season” as if it starts and ends on specific dates…
But it’s not true at all.
Just look at any earnings calendar and flip through the dates… It never ends.
Companies are reporting earnings year round.
While it’s true that the biggest, most popular companies tend to cluster around a 6 week period every quarter…
The reality is that if you wanted to trade earnings, you could do it year round.
Which brings me to the main point of this article:
If you ever find that you have too much money, the best way to lighten your load is to trade earnings the way most people do.
What do I mean by that?
“I heard TSLA had a good quarter. I’m going to buy some calls going into earnings…”
“Nvidia can’t possibly go up any higher. Watch these puts skyrocket after they report horrible earnings…”
You know what I’m talking about.
At the end of the day it’s a guessing game.
You might have all these smart-sounding ideas about why some company is going to report a certain way.
But the truth is you — and the rest of the market — are just guessing.
And often it’s not even about the numbers themselves.
Sometimes a stock can report good earnings…
But their forward guidance isn’t what the market wants to hear — so the stock takes a quick dip!
That leads me to the weird twist I promised you about how I trade earnings:
I NEVER place a trade before earnings.
And if I’m already holding something that’s about to trade earnings, I usually try to get out of it so I’m not caught in some kind of weird earnings reaction.
Instead, I trade AFTER earnings are announced.
That way I’m not trading earnings — I’m trading the REACTION to earnings.
See, lots of people think that once a stock has moved after earnings, that move is done.
And you know what? Sometimes they’re right.
But if you know what to look for, you can tell with a high degree of certainty whether that move is going to fizzle out fast…
Or if it’s a new trend worth jumping on!
I don’t have the space to share everything with you here…
But if you want to hear more about how I’ve been able to trade the earnings REACTION…
So I’m not guessing and getting caught with my pants down…
I’m going to be live tonight at 8pm Eastern with all the details.
Just click here to reserve your spot.
I look forward to giving you a completely new perspective on earnings and how I’ve been able to trade them so successfully.
Catch you on the flip side,
— TBUZ | | | | |
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