Steps for Trading Options into Earnings
This Video describes our process in real-time how we scan for Setups into earnings to determine whether or not we want to short options/spreads as an Income Trade (i.e., keep the elevated premium into earnings) or a Directional Trade where we want to speculate on a direction based on the pattern with limited risk.
At Master Trader, we trade stocks, futures, and options using our objective approach, and which applies to all time frames.
The Advisory Swing and Options Letter focuses on long or short stocks and options using Master Trader Strategies (MTS).
Call or put options are also used for when the options are liquid.
We sell options and spreads as Income trades where we profit through time decay and volatility contraction.
Doing these INTO EARNINGS can be very profitable, but the Gap Risk makes them riskier. But our approach reduces that risk. Our extraordinary results prove it.
The premium received in selling options/spreads gives us a Cushion to be wrong where we still make money as long as the stock does not close beyond our cost basis at expiration.
Click below to see a VIDEO Review of us reviewing in real-time in the Green Room upcoming earnings trades for possible Option Trades into earnings, and which ones we entered actual trades:
Why Does Shorting Options Put the Odds in Our Favor?
We sell options/spreads around compelling patterns –- particularly on earnings or stocks in the news when volatility remains high – and literally “get paid” to determine where a stock will not go in a short time.
We also do this into earnings – where Gap Risk is higher with the high volatility – using our approach.
We also BUY options/spreads into earnings on Directional Setups when the patterns setup using Multiple Time Frames (MTF).
Management updates are sent intra-day by text message to subscribers.
All open and closed trades are documented in the subscriber member area. Intra-day, updates are texted to subscribers.
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