How to Profit From Earnings Season, Which Starts Next Week

How to Profit From Earnings Season, Which Starts Next Week

Posted On April 7, 2021 12:50 pm

I’m incredibly excited for the upcoming season of my Earnings360 Service.  We are now heading into the 15th consecutive quarter that I’ve run the program, and I’d like nothing more than to have you join me at the live event that I’m hosting this Friday, April 9th, at 1:00 pm EST/10:00 am PST. This is where I’ll explain my unique approach to trading earnings. 

I do think that you’ll find that my options-centric approach brings a new level of market analysis, options expertise, and accessibility, which has generated consistent gains for 14 consecutive quarters for a total profit of $21,426. You read that right, Earnings360 members have profited every single quarter since the service was launched.

[Limited Spots Available] Claim your FREE Webinar entry into the trading service that’s Generated Profits for 14 Consecutive QuartersThe Earnings360.

trading equity curve

What this service doesn’t do is take wild shots via purchasing out-of-the-money “lottery tickets,” hoping to hit a directional home run.

The Earnings360 approach harnesses the predictable changes in implied volatility that come before and after earnings reports; namely the expected decline in implied volatility that occurs after the release of the earnings report. This is something I call the “Post Earnings Premium Crush” (PEPC). 

Why Play Earnings?

Most of the time, stock prices are random walks towards points unknown.  Sentiments, fleeting news narratives, and cursory analysis are applied to explain the various ups and downs. However, they’re mostly ascribing reasons after the fact.

But, four times a year, the truth about a company’s profitability, or lack thereof, is revealed causing stock prices to react immediately and often dramatically. I’m talking about quarterly earnings reports.  These reports provide an unvarnished accounting of companies’ state of business and their immediate prospects

This quarter should be particularly interesting as companies will be lapping the last year’s shutdown that began in March of 2020. I expect this to lead to very high implied volatility leading into the reports that provide pumped-up premiums for us to harness, using carefully selected strategies such as basic vertical spreads, iron condors, and double diagonals. 

However, don’t worry about being overwhelmed. Each trade recommendation is sent by both a text and email Alert, which explains the rationale behind employing a specific options strategy. Additionally, I provide exact step-by-step instructions on how you can place the order using defined price limits.  Earnings360 typically sends approximately 25-30 trade recommendations over the course of the six-week program. 

This season, which will run from April 15th to May 28th, should present us with a plethora of opportunities for large profits in a very short period of time!  

[FREE Webinar] Join Me This Friday at 1:00 pm EST/10:00 am PST to learn the unique trading approach that’s led to massive profits for my Earnings360 members — Do NOT Miss Out! 


About author

Steve Smith

Steve Smith have been involved in all facets of the investment industry in a variety of roles ranging from speculator, educator, manager and advisor. This has taken him from the trading floors of Chicago to hedge funds on Wall Street to the world online. From 1987 to 1996, he served as a market maker at the Chicago Board of Options Exchange (CBOE) and Chicago Board of Trade (CBOT). From 1997 to 2007, he was a Senior Columnist and Managing Editor for TheStreet.com, handling their Option Alert and Short Report newsletters. The Option Alert was awarded the MIN “best business newsletter” in 2006. From 2009 to 2013, Smith was a Senior Columnist and Managing Editor for Minyanville’s OptionSmith newsletter, as well as a Risk Manager Consultant for New Vernon Capital LLC. Smith acted as an advisor to build models and option strategies to reduce portfolio exposure and enhance returns for the four main funds. Since 2015, he has worked for Adam Mesh Trading Group. There, he has managed Options360 and Earning 360, been co-leader of Option Academy, and contributed to The Option Specialist website.