Negative news can still create an 83% gain

A Warning About Earnings Sets Up an Income Opportunity
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A Warning About Earnings Sets Up an Income Opportunity

"Our fourth quarter results fell short of expectations. We increased market-related downtime to better balance our supply with our customer demand and to accelerate our inventory reduction plan," said the CEO of a company preparing to announce earnings.

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But there is room for optimism about the future as the CEO noted that looking ahead, "Our inventories are now at optimal levels and our expectation is that our business will return to a balanced level in early 2020 given recent capacity closures."

This stock offers an unusually profitable opportunity, as we explain in our latest article, and shares of this company could provide significant potential gains for aggressive traders willing to use options.

As we explain in detail, we use an options strategy that is focused on risk and the risks of the trade are strictly limited at the time the position is opened. We show what the amount of risk is in dollar terms and we also detail the potential gains of the trade which is 83%.

The potential risks and the possible gains of the trade are detailed and are based on actual recent market data rather than hypothetical prices. We also show we arrive at the numbers so you could possibly find other trading opportunities with this method.

You can continue reading about this in our latest free educational article that is available right here.

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