Are you prepared for the first earnings season of 2019?
After one of the worst years in a decade, investors are faced, once again, with a report on the health of the overall economy.
The third quarter was one of the most robust in years, yet Mr. Market didn’t really care. The market moved sharply lower shortly after earnings season wrapped up.
And just last week, Apple (NASDAQ: AAPL) announced a surprising cut to its revenue forecast.
Economists, analysts and more importantly, individual investors are all debating the overall health of the economy.
A colleague of mine sent me a wonderful article from the NY Times on Thursday that contained several questions the market has been debating over the past few months. The answers could determine how the market fares during the upcoming fourth-quarter earnings season.
- Will China’s slump hurt America’s business?
- What’s the mood of American consumers?
- What’s the impact of rising wages and other costs?
- Will executives sit on their hands when it comes to hiring and capital investments?
But while others are debating these questions, I’m only concerned with one question: How can I use earnings season to make profitable trades?
Years ago, it made no sense to trade earnings. Because of numerous limitations, trading earnings announcements just didn’t make sense from an efficiency standpoint.
Well, things have changed.
Thanks to innovations like 52 weekly expiration cycles . . . a variety of new, highly liquid tradeable products . . . and the clarity a once-unknown calculation now provides . . . we have the opportunity to earn big earnings season profits from earnings news with a series of overnight trades.
One of the key tools I use to make profitable trades during earnings season: expected move.
What is expected move?
It’s the price movement the market expects during a given expiration cycle. It’s the key to successfully trading earnings announcements. Fortunately, now we have tools that allow us to see, in real time, the expected move for any given underlying stock around an earnings announcement.
Knowing the expected move prior to a stock’s earnings announcement allows us to use a high-probability strategy – a strategy that has allowed us to make a 415.9% return since I introduced the strategy one year ago.
And this strategy is reliable: We’ve made 49 trades in total over the past year with a 77.5% win ratio.
Best of all, we don’t need to predict whether the stock’s price will go up or down. We make big earnings season profits either way – usually in 24 hours or less.
Last earnings season, during one of the most volatile periods in the last decade, we made 76.2% profits in just 28 days.
Click here to get the details on how to make these trades right now – during the current earnings season – and generate earnings season profits regardless of whether share prices rise or fall.