And unfortunately, most investors, particularly those new to the market, will get out their crystal balls and try to speculate which direction a stock will head after its announcement.
The strategy most use – buying options. And this is unfortunate, because most investors don’t realize that buying options, whether it is a call or put, around earnings, is a losing proposition from the onset.
There is a far better and far more profitable way to approach earnings season.
A way that will allow you to consistently profit, on average, 88.4% of the time. That’s right, in 2020, we’ve managed to return over 224%, with an average win rate of 88.4%.
The reason I point out the return in 2020 should be rather obvious . . . it’s been a tumultuous year . . . and this options strategy has performed incredibly well.
But let’s not forget, I started the options strategy back on Oct. 26, 2017, almost three years ago. And the long-term performance of the options strategy has displayed long, sought-after consistency. Since I initiated that first trade in Microsoft (MSFT) back on Oct. 26, 2017, my earnings season options strategy is up 844.8%.
Consistency, even during times of volatility, is the key component to successful investing over the long term. And our earnings season strategy has proven profitable during volatile markets.
The recent news with our President should not be of any concern from an investment standpoint. Yes, other strategies will be affected, but our earnings season strategy will definitely not be one of them. In fact, it thrives on uncertain markets.
Just take a look for yourself . . . the stats are pretty darn amazing.
Year 1 (Oct. 26, 2017 – Oct. 26, 2018)
- Total Cumulative Return: 358.4%
- Win Ratio – 84.4% (38/45)
Year 2 (Oct. 27, 2018 – Oct. 27, 2019)
- Total Cumulative Return: 207.6%
- Win Ratio – 82.1% (23/28)
Year 3 (Oct. 28, 2019 – Oct. 2, 2020):
- Total Cumulative Return: 278.8%
- Win Ratio – 88.4% (23/26)
The best part about all of this . . . we start trading next week. And I’m psyched about it.
Here is a list of the top 10 companies we are focused on over the next two weeks.
- Johnson & Johnson (JNJ)
- J P Morgan Chase (JPM)
- Citigroup (C)
- Morgan Stanley (MS)
- Goldman Sachs (GS)
- Wells Fargo (WFC)
- Bank of America (BAC)
- Walgreens Boots Alliance (WBA)
- Domino’s Pizza (DPZ)
- Delta Air Lines (DAL)
Next week I will be holding a brief discussion on my earnings season options strategy and how I plan to trade all the stocks mentioned above over the next two weeks.
We do have limited spots, so click here now to make sure your seat is reserved.
I look forward to the discussion.