Many traders sell options before an earnings announcement hoping to profit from the volatility contraction afterward.
Options premiums typically increase in anticipation of volatility. While that increased premium is attractive to the seller, that is gambling to us since you have no idea how big a gap could be on the announcement – or in what direction.
Why Not Sell Options After Earnings? Let's consider that “Option”!
Master Trader specializes in selling short-term options/spreads during the morning hours following the announcement – when volatility is still high — using the charts to confirm a short-term top or bottom for a few days.
This way, we have a high-probability chart setup and avoid the huge gap risk holding over earnings.
Selling Options and Credit Spreads Using Master Trader Strategies (MTS) Has an Incredible Edge.
We generate weekly income from selling options and credit spreads, profiting from volatility contraction and rapid time decay for merely calling a top or bottom for days!
Weekly options expire every week – most of them worthless — and that makes them a great instrument for weekly income.
This video shows you the exact steps of how Master Trader does this, using actual trades last week on the earnings announcements of NFLX and PM.
Learn how Master Trader Technical Strategies – MTS with Credit Spreads can make consistent money.
Access the Program that puts you on the Master Trader Options Income Path HERE
Master Trader and You Building Your Financial Future Together!
All the best,
Chief Options Strategist
Managing Director of Master Trader
Trading the Pristine Method — Origin and End
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