Wild market swings don’t have to be frightening…
Try these earnings trades and you’ll see why volatility can be an earnings player’s best friend.
When it comes to earnings trading, large share price moves are most welcome—it’s our opportunity to profit from the untimely value correction that comes when operating results are released.
In most cases, the time to place an earnings trade is immediately prior to the event. Occasionally, the inefficient market takes things too far, allowing us to place our trades at bargain-basement prices.
An oversold stock provides a wonderful entry for longer-dated earnings trades using simple call and put options.
The payoff comes down the road when earnings force the market to re-price the stock.
This week, we saw just how powerful that can be, even when the news is only so-so.
Let’s look at what happened, then we’ll check out 3 oversold earnings trades for you to consider making today…