When Napoleon was asked which generals to take to war Napoleon answered "Give me the Lucky ones." – optiondragon
For the past 4 years I have been perfecting the Earnings 3 ways method. One of my specialties is event catalyst volatility plays. – optiondragon
One of my best friends Dad didn’t believe that I made $200,000 strangling GOOG earnings back in 2005 2nd Q earnings. I run into these people everday. I just shrug my shoulders and move on when they don’t take my ($1000)bet that i did. What are u gonna do? – optiondragon
Earnings are a period of great uncertainty, great volatility, and great possibility. There are a ton of intricacies to the strategies of trading earnings, to take advantage of the volatility or hedge against it. Earlier this year, up until Happy got his own site running, optiondragon shared his insights and tremendous success through Phil’s daily comments. Collected below are a few specific comments detailing dragon’s approach, and clarifying a couple of the key details.
Because earnings periods can be so volatile, and therefore either rewarding or punishing, we’ll use this page to build up other aspects of the strategy as well. First things first, we start with OptionSage’s posts about earnings:
Reading List
Dragon’s Strategy Article
The next key point is an article dragon posted about how to trade Gaps after earnings. The strategy in this post plays a key part in dragon’s earnings approach. Until you read it, you won’t have context to understand a bunch of dragon’s commentary. I’m assuming this link will work, but if not (or if the article moves), I found the original article with the following details:
- Website: thestreet.com
- Author: Ken Wolff
- Title: How to Profit from ‘Gaps’ at the Open
