Updated: Oct 25, 2020
Have you ever won on an earnings play? If so, you know how great it can be when it works in your favor! Even though playing a stock's earnings through options can result in a great profit, most traders are usually hesitant when it comes to playing earnings. They know the risk of placing their money solely on the hopes of a good earnings report. Sometimes, a company can even report great earnings but the market doesn't react in its favor, resulting in a disappointing loss. The true outcome is rarely known and can either be tremendous or horrific! Now, as we’re among many company’s 3rd quarter reports, the examples we are about to discuss will be educational and helpful if you’re considering trading amid these reports.
Just in the past week here at Underground Options, we were able to lock in two great wins on earnings plays! $SNAP +793.33% and $LUV +31.48%
As seen below, we alerted our members of a smart money trade on $SNAP $32 calls. The next day after the market closed, $SNAP reported earnings and absolutely crushed them, causing the stock to soar over +30% the following day, from around $29/share, to as high as $38/share! This resulted in our options being up as much as +793.33%!
Monday, we alerted our members of this smart money trade on $LUV $45 Calls. On Thursday morning, the company reported great earnings, sending the stock soaring up over 5% from where it was when we alerted our members. This resulted in a +31.48% win on our options!
How did we do this? How did we know both these companies would report great earnings? It wasn’t because we did hours of research, crunched numbers, or calculated different expectations and possibilities. We did one very simple thing. Using our proprietary scanner and process, we tracked the smart money trades placed by Wall Street insiders!
It was very likely the buyers of these trades had information about the upcoming earnings reports that they weren’t suppose to use to their advantage (insider trading), but it happens more often than you’d think. No matter what these traders knew, they were right!
All we had to do was use the information we were given and share it with our members. Doing so resulted in a combined return of +824.81% in two trades!
This is why trading options alongside the smart money is so effective!
Join us in exposing and profiting from the insiders of Wall Street and their smart money trades!