I always get jacked up for earnings season.
This is the time where the charts and technicals truly tell the story, volume trends give you a good read on where the big money is flowing. While this week has been the start of first quarter earnings the biggest flow of reports starts next week.
POSITION YOURSELF
So, what is so attractive about playing earnings? As an options player, I like big moves, and higher volatility will create this. Big moves up or down outside of an expected move can pay off handsomely if positioned right.
TOP PICKS TO WATCH
Some of the names I’ll be looking at next week: GOOG, GE, IBM, INTC among others.
DIFFERENT TYPES OF PLAYS
I will often use various strategies to take advantage of time, direction or volatility. The ‘time’ moves tend to be calendar spreads, while directional bets can be straight puts/calls or verticals. I will play strangles, straddles, butterflies and condors if I’m looking for a big move in either direction.
BE READY
Earnings season comes four times a year. Be ready for this one, it could be a profitable one.
= = =
FREE WEBINAR
Lang will be talking about these and other strategies in an exclusive Trader Planet webinar on April 30 after the close. This is a great chance for you to learn how to navigate with options during earnings or any other time. Sign up for his free webinar here.
