While most of the heavyweights have already reported their quarterly earnings, there are still plenty of names left on the docket. And as always, earnings reports can be a powerful catalyst.
I used to fear earnings season. The old stock trader in me had it drilled in early: don’t hold into earnings. The risk of an overnight blow-up always loomed too large.
But now? I see it differently.
As an options trader, I can define my risk. And that’s a game-changer. I no longer automatically avoid stocks with earnings coming up. In fact, I often lean intothose setups now—especially when I see a trend that looks like it’s just waiting on a spark to resume.
Case in point: I’m putting on a new trade today in a stock from the global life sciences sector. It has earnings coming up, yes—but it also has a structure that says, “Hey, I’m ready for a move.”
And there will likely be more of these ahead.
Don’t fear earnings. Define your risk, and look for clean trends that just need a catalyst.
Sean McLaughlin | Chief Options Strategist, All Star Charts
