This cruise line could provide a 117% gain

News Creates an Opportunity to Risk Less Than $120 for a Potential Gain of 117%
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News Creates an Opportunity to Risk Less Than $120 for a Potential Gain of 117%

Earnings announcements can create volatility in a stock and that volatility can provide a trading opportunity. The news could actually present a trading opportunity whether the stock moves up or down for traders who use options.

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In this case, the stock moved up on a solid earnings report and the move could be the beginning of a new up trend in this stock after two years of a down trend. However, there are reasons to consider risk and we have a strategy that does that.

As we explain in our latest article, there are strategies that can benefit from news while considering risks of a reversal.

In the article, we explain in detail, one such options strategy. This strategy is one that is focused on risk and is able to limit the risk to a precise level in dollar terms. In this trade, which we explain in detail, the risk is limited to $115 based on recent market prices.

Despite that focus on minimizing the potential risk of the trade, the strategy is still capable of delivering large short-term returns. We show how to find the exact amount of risk is in dollar terms and we also detail the potential gains of the trade which is more than 110%, based on actual recent market data.

You can find all of the details of the strategy and the specific trade in our latest free educational article that is available right here.

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