For those not familiar with the Earnings Player game, let me elaborate. Over the course of each and every quarterly earnings season, I provide weekly subscribers with option trades designed to profit from the wild swings in stock price that can come when companies report earnings results.
The trades are implemented immediately prior to a company reporting results and then closed the trading day after results are released. The cream of the crop of these picks I call my Stone-Cold Lock of the Week, one pick each and every week that Earnings Players won’t want to miss.
This past season, the returns for my Stone-Cold Lock of the Week were stellar. Of the seven Stone-Cold Locks, three of them doubled in value and two produced 50% returns. There was one breakeven trade and one small loser — down 15%. Risk $1,000 per trade and you would have pocketed nearly $4,000 in just seven weeks of trading.
Instead of twisting in the stock market wind, Earnings Players can generate huge supplemental trading income by simply taking advantage of market pricing after an earnings announcement.
Whatever your view is on the markets, being an Earnings Player simply makes sense.
So how did I find so many big winners for my Stone-Cold Lock of the Week? You might be remarkably surprised at how simple it can be. In fact, it is so simple anyone can do it. I’ll show you a few of my tricks by sharing with you how I went about finding my last Stone-Cold Lock of the Week, Pandora Media (P).
In hindsight, buying a call option before Pandora released its earnings looks like a no-brainer. The biggest winners always look easy, but the truth is that there were plenty of folks betting against Pandora, making an earnings trade a difficult call.
With my approach, I remove all of the clutter and focus on a handful of simple facts. The more facts I have on either the long or the short side ultimately dictates how I play the event.
Read on for a closer look at the 5 secrets behind my Pandora recommendation: