4.8 • 1.2K Ratings
🗓️ 31 March 2020
⏱️ 66 minutes
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Show notes: http://optionalpha.com/show174
Earnings season comes around four times a year for stocks, and as traders, we've always loved the idea of trading these events for the crush in implied volatility and quick potential moves in option strategy positions. However, after analyzing 1,546 earnings events across 40 underlyings over 10 years we decided to stop trading earnings events completely. In today's podcast, I'm going to walk through the research on earnings moves, and how different options strategies performed under various setups and conditions.
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0:00.0 | Earning season comes around four times a year for stocks and as traders we've always loved |
0:04.4 | the idea of trading these events for the crush and implied volatility and quick potential moves in the |
0:09.3 | options strategy position however after analyzing 1,546 earnings events across 40 underlying |
0:16.8 | over 10 years, we decided to stop trading earnings events completely. And in today's podcast, |
0:21.9 | I'm going to walk through the research on earnings moves and how different option strategies performed under various setups and conditions. |
0:28.0 | You're listening to the Option Alpha Podcast from Option Alpha.com, where we show you how to make smarter trades, learn how the stock market really works and generate consistent monthly income. |
0:40.0 | Now, your host and head trader at Option alpha.com Kirk depluses. |
0:47.0 | Hey everyone this is Kirk here again from option alpha.com working every single week to make |
0:50.9 | this the most popular investing podcast offered online because it's |
0:54.1 | based on one thing and one thing only and that's helping you consistently play smarter, more profitable |
1:00.1 | trade. So again, thank you so much for tuning in today. On today's episode, we're going to go through all of the new research around why we stopped trading earnings. Now, truth be told, this research isn't really that new because we actually released it back in 2018 |
1:15.2 | and we've been talking about this for quite some time but we just actually haven't come |
1:18.5 | around to the point of actually dedicating an entire podcast episode to it. |
1:22.8 | So it should come as no surprise to many people who continue to follow us or follow our trading and |
1:26.9 | strategies that we've stopped trading earnings for quite some time. In fact, we started to remove |
1:30.8 | some of the content around earnings on the website because of this new research |
1:34.4 | that we completed at the end of 2018. |
1:37.3 | Now I want to say this as we start this podcast. |
1:39.7 | This is how I'm personally trading now, so I decided to stop trading earnings I think after |
1:44.8 | you listen to some of this research you would probably make the same assumption there's definitely |
1:49.3 | a case for potentially making some earnings trades and we definitely will lay that out in the podcast |
1:54.6 | if you remove some of the tickers |
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