Fun Trade With Itty-Bitty Risk

At the beginning of each Earnings Season, my team and I – and several others – get together for a live research session to find the 5 Best Trades During Earnings Season.

Today is Expiration Day, so let’s see how we did just one month ago.

In this quarterly Earnings session, we go over our game plan, look at the stocks we’d like to trade, answer any questions you might have. Then we position to profit off these amazing opportunities potentially.

Since I started this, people have consistently told me that Earnings Season is one of their favorite trading strategies.

And the 3rd Quarter of 2022 did not disappoint.

Below are the 3rd Quarter ideas we shared, along with today’s closing levels.

If traders were to put on the trades during the class…

Ignore those trades until expiration…

Those positions would now be up 25%.  

That’s not realistic, but still – the benefit of having a trading plan each earning season is rinse-n-repeat every quarter of every year.

A few Important highlights about Earnings trades.

We prefer to buy options. The benefit of buying options is that you will never lose more than you invest.  That’s good for you.  

No surprises. No nonsense.

The earnings trades for the 3rd Quarter had a collective $1,065 of risk; if those trades were held until expiry, they would be worth $1,330 as I write.

But the real excitement came during our Live options class yesterday…