Editor’s Note: Tom Gentile has worked his whole life to undermine the Wolves of Wall Street. And in today’s special video edition of Power Profit Trades, he’s sharing the secret’s he’s harnessed to help his readers make millions. In fact, he put together this free boot camp video to explain it all… and to reveal how you can stop playing by Wall Street’s game today. Click here to see it now.
Recently, I sent you an email where I discussed some potential stocks that are on my radar for the upcoming earnings season.
And I received a lot of questions about how exactly I go through and look at earnings…
That’s why today I’m going to let you in on all my secrets so you can prepare for major profits to come.
So, here’s what you need to know…
First off, I want to address that I do not buy options through earnings…
If you like to be in the middle of the action though, I think it’s much better to be on the sell side because volatility is very high when the reports come out.
You see, my strategy is to buy up to earnings – but I get out before the report comes out.
Now, here’s how I choose the stocks that pop up on my radar.
Surprise, I look at patterns!
First off, I look at how many years the stock has beat its estimate over the past few years. I am always looking for stocks that have beat their estimate more often than not.
Then, I look at the two things that make option prices move.
- Price
- I run scans that pinpoint the best price changes and average moves before earnings. And then I look deeper into the pattern, and select those whose price typically goes up before earnings.
- Volatility
- With volatility, I look to see if the option volumes are going higher. Through this I am looking to see if a lot of people are getting in on the stock because they will most likely hold the trade through earnings.
combine all of these patterns and test together and compile a list of my top competitors per my scans.
And that’s it!
I hope this answers some of your questions regarding patterns surrounding earnings season and helps you make the best decisions regarding your investments during this time period.
Now, I’ll continue to watch this market action to make sure I’m bringing you the most profitable opportunities out there. But the way my latest trade recommendations are going… they should be rolling in quick. Take a look at the incredible gains I delivered using my proprietary Money Calendar this month:
July 9: 109.05% on XLV, July 9: 101.64% on BIDU, July 10: 68.22% on SPY, July 10: 122.27% on XLV, July 12: 145.27% on AMZN, July 12: 186.92% on CELG, July 12: 121.92% on GOOG, July 12: 45.45% on QQQ, July 16: 270.37% on AMZN, July 18: 143.41% on XLK.
Folks, my fast-cash strategy is just heating up… And with two brand-new profit opportunities ready to launch on Monday, it’s time you take advantage…
Click here now find out how to make your move before Monday’s opening bell.
I’ll talk to you soon,
Tom Gentile
America’s #1 Pattern Trader
