Eliminate the Guesswork and Trade This Earnings Season Like a Pro VIEW IN BROWSER Four times a year, something extraordinary happens in the markets. Every publicly traded company in the U.S. — from megacap tech giants like Apple to tiny biotech firms you've never heard of like Zymeworks — is required by law to step into the spotlight and show their hand. They release their quarterly earnings reports. They tell us how much money they made, what’s working, what isn’t, and what they expect for the months ahead. And almost without fail, these announcements trigger the biggest stock moves of the year. For a few short weeks, the entire market becomes a minefield of potential explosions — some positive, some catastrophic. Stocks gap up 20% in a day. Others collapse overnight. Implied volatility spikes. Emotions run hot. It’s fast. It’s noisy. And for most retail traders, it’s a gamble… Why? Once you understand the structure of earnings season—these fixed, unavoidable catalyst events that affect nearly every stock in the market—you’re left with a choice: How do you actually trade it? And that’s where most traders lose the plot entirely. Allow me to explain… Recommended Link | | Louis Navellier has uncovered a specific company that's perfectly positioned for Trump's reshoring agenda but flying under the radar. Based on his 40 years of experience finding stocks like Amazon and Nvidia early, this could be explosive. Click here to get the details. | | | Two Roads Diverge in Earnings Season… and Most Traders Pick the Wrong One The first approach most traders take is obvious: they bet on direction. They read the news. They watch CNBC. They make their best guess — Will this stock go up or down after the report? And then they place their bet. The problem? Even if they’re right about the company’s performance, they often still lose money. The options market already knows there’s an upcoming catalyst. The expectations are already priced in. So the smart money hikes up the implied volatility for options around that date. True, the stock could still pop higher in the short term. But if it doesn’t move outside of the range the market makers are expecting, the options will still lose value. That’s not a calculated strategy. That’s a roll of the dice. The second approach is the one I always take: I trade the pricing of the event itself. Instead of betting on whether a stock goes up or down, I look at how much the options market expects it to move — and I compare that to how much it’s actually moved in the past. Options are priced to reflect expected volatility. When those expectations are too high or too low—compared to what the stock usually does — opportunity opens up. Now, let me pause here for a second and give you some background. I didn’t come to this approach by accident. For a long time, I was that trader betting on direction rather than volatility. Every earnings season was the same story. No significant returns. Just frustration. But that all changed in 2011… That’s when I was working as a partner at a proprietary trading firm. And I was surrounded by traders who weren’t guessing at all. They were looking at implied volatility and historical movement like hawks. They used pricing discrepancies as their edge. It wasn’t until I started asking the pros how they were approaching these events that everything clicked. They weren’t trying to predict the future. They were identifying whether the market’s current expectations were right or wrong. That insight changed everything for me. And it became the basis for how I trade earnings to this day. This past week, inside Masters in Trading Live, I walked traders through exactly how I approach earnings season… Not with gut instinct. Not with predictions. But with data, with discipline, and with a method that’s been delivering consistent results for over a decade. It’s all in my Earnings Season Master Class. And this week, I showed viewers exactly how to trade earnings like the pros. Just click here to learn all about my earnings strategy – and the key earnings season plays boosting our portfolios right now Remember, the creative trader wins, |
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