My favorite season is finally here — earnings season!
And this round of reporting could be more important for the market than any other we’ve seen in the past year.
It’s important because not only will we really get to see how the pandemic recovery is shaping up and just how much analysts have been sandbagging earnings in the past few quarters…
But markets are at record highs, big tech is at record highs — they ran Amazon.com Inc. (Nasdaq: AMZN) and Apple Inc. (Nasdaq: AAPL) to all-time highs…
And mega traders don’t let names like these gap up on earnings…
So instead, they’re looking for a move in other corners of the market they can take all the way to the bank…
Which gives traders the chance to earn some scratch with the right earnings season options strategies.
So, what do we have? One word — banks.
Banks start to report this this week with heavy hitters like JP Morgan Chase & Co. (NYSE: JPM) and Goldman Sachs Group Inc. (NYSE: GS) beating consensus estimates.
Now, I’ll be honest with you — banks are nothing sexy.
They don’t usually move a lot, so if you want to trade them, I’d recommend one of my favorite earnings season options strategies, which involves selling premium…
And of course, we never sell naked premium, because you never want to get caught with your pants down.
Using options spread strategies like your iron condors, selling bear call spreads, selling bull put credit spreads… these are all proven strategies traders can use to capture profits and limit downside risk through unknown events like earnings.
Of course, banks aren’t the only sector the big boys on Wall Street have in their sights this earnings season. Next week, the FAANG stocks will start reporting and that’s where things could really get interesting.
Check out the quick video below to find out how I see that potentially shaping up and how I plan to use my earnings seasons options strategies to take advantage of the massive profit potential.
As always, you can follow me on social media @lanceippolito on Twitter and Instagram. And don’t forget to subscribe to our YouTube channel if you haven’t already so you can be notified as soon as we post our next video!
P.S. What do an 83% stock price dip, dividend cuts and a mountain of debt have in common?
They were all bad news headlines about Apache Corp. in April 2020.
So with those awful headlines, how did I know to buy in at that time…
And walk away with a 157% return just over a month later?