Trading earnings season, after the earnings news

A Possible Gain of 170%, After the Stock Jumped More Than 10% ...READ MORE
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A Possible Gain of 170%, After the Stock Jumped More Than 10%

Last week, about 15% of the companies in the S&P 500 announced earnings for the first quarter of the year. In the next week, about 150 more companies in the Index will release earnings. Over the next few weeks, hundreds of companies will provide reports.

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I wish I was wrong about this one. I really do.

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Traders can benefit from the announcements, although few traders will use the kind of strategy that we explain in our latest article, which could be among the best strategies for traders focused on limiting risk.

Some of the risk of trading earnings reports is the risk that companies can deliver lower than expected results. When that happens, a stock can sell off significantly and share holders are then left with potentially large losses.

We describe a strategy that waits for the announcement before placing a trade and that reduces the risk of an unknown earnings report driving the stock. We reveal the details of the strategy and we highlight an actual trading opportunity.

Based on recent market data, as we explain, this trade could deliver a potential gain of about 170%. We also explain the risks and, again based on recent and real market data, show how the risk in this trade could be limited to no more than $130. We also include details to show you how to know what the risk of this strategy is, in precise terms.

You can read more in our latest free educational article that is available right here.

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