Trading Earnings With Options (My Favorite Strategies & Examples)

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/PaymentONEREFA_Trial_ewqp4gui4938a435d2c9e6d1cb18utk0.aspx?id=projectoption

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

If you need a brokerage account and you'd like to trade with tastyworks, get one projectoption course for free when you open and fund your first tastyworks brokerage account with $2,000 or more: https://www.projectoption.com/free-options-trading-course/

Learn More About tastyworks: https://www.projectoption.com/tastyworks/

=== RECOMMENDED VIDEOS ===

Stock Options Trading 101: https://youtu.be/3bELT5FZCic
Iron Condors Explained: https://youtu.be/6UOk_78nVio
Implied Volatility Explained: https://youtu.be/H-NHZq-skFo
Why Early Exercise/Assignment is Rare: https://youtu.be/7pTb1a5IgKM
Options Trading For Beginners (PLAYLIST): https://www.youtube.com/playlist?list=PL33AZa4cv-o58ldr-5zSn4ROx4SZG7Jyo

Видео Trading Earnings With Options (My Favorite Strategies & Examples) канала projectoption