Want to know how to spot potential winners ahead of earnings and triple your investment overnight? Of course you do!
Micron reported its 2021 second-quarter earnings after the closing bell on Wednesday. And today, I want to break down my overnight winning trade in Micron after putting on a bullish risk reversal.
In today’s video, I explain what this means and how to execute this type of trade. It’s not nearly as complicated as it may sound to newer traders.
But first, why Micron?
For starters, its chart showed the stock was in a consolidation phase for the past couple of weeks prior to earnings… meaning it was poised to pop like a spring after reporting.
Plus, another semiconductor stock in the same sector, Western Digital (Nasdaq: WDC), had strong call options buying behind it.
Now those aren’t the only bullish indicators that convinced me to hop into a Micron earnings trade…
I also received an extra boost of confidence after a decent-sized order hit the tape for Micron Technology (Nasdaq: MU) weekly expiration call options.
It’s important to note that Micron is widely held and trades a boatload of options every day — over hundreds of thousands of contracts, combined with tens of millions of shares.
So it takes a lot to move the needle in a stock like Micron…
But on earnings, you can take advantage of high implied volatility when market makers jack up options prices. And you can use bull put credit spreads, which is how I played MU, to minimize your risk while boosting your potential reward on an earnings trade.
Tune into today’s video for more on using spreads, as well as the specifics on my three-times overnight Micron earnings trade!
As always, leave your thoughts in the comments below. And don’t forget to subscribe to my YouTube channel to stay up to date with all things trading.
P.S. There’s a glitch in the market that very few average traders know about. And it forces Wall Street to buy a stock…
Sending its price 200%… 300%… even 1,000% higher in as little as 24 hours.
I’m not talking about tech explosions, value investing or risky penny stocks. I’m talking about household names soaring triple and even quadruple digits.
Historically, knowing how to spot this glitch before it happened helped everyday traders grab some of the fattest paydays…
That’s exactly why I’m finally revealing exactly how everyone can spot the next one!