A 1% rally in this stock could force Wall Street’s hand — see how I’m playing it at 4 p.m. ET!
Earnings season is one of the best times to be a trader — if you know what you’re doing. The market moves fast, volatility spikes and opportunities show up everywhere.
But most traders get earnings wrong because they don’t understand how implied volatility works or they gamble on one-sided trades.
I don’t trade earnings based on gut feelings. I don’t trade them because I “like” a stock or because I think it “should” go up or down. I trade earnings by the numbers — systematically, with a strategy that has worked for years.
It’s about understanding how price reacts to expectations and how implied volatility plays into the setup.
Why Selling Premium Isn’t Always the Best Move
A lot of traders think the best way to play earnings is by selling premium — selling straddles, strangles or iron condors to collect inflated options prices before the implied volatility crush (IV crush) happens post-earnings.
The logic makes sense…
IV rises before earnings, then crashes afterward, so if you sell options, you profit from that volatility drop. The problem is earnings are a directional event.
The market either moves as expected, moves slightly beyond expectations, or moves slightly less. And when a stock moves more than the market was pricing in, selling premium can get ugly fast.
This is why I prefer a different approach — trading earnings directionally with a defined-risk strategy.
How I Trade Earnings With a 60%+ Win Rate
Instead of trying to guess the direction, I trade both sides. My earnings strategy is built on probability, not opinion.
Here’s how it works:
- I look at the expected move. Every earnings event has an implied move baked into the options market. If the stock moves more than that, there’s an opportunity.
- I structure a trade that benefits from movement in either direction. That could be a broken-wing butterfly, a straddle, or an iron fly — whatever gives me the best risk-to-reward setup.
- I focus on cost-effectiveness. Some traders throw big money at earnings trades, hoping for a home run. I prefer setups that allow me to risk small while still capturing big moves.
- I manage risk aggressively. If I’m wrong, I keep losses small. If I’m right, I take profits early — no need to get greedy when the market hands you a win.
Earnings Trades I’m Watching
This week, I’m trading earnings on a few key names. I’ve already taken profits on Electronic Arts (EA) after a clean move to my target liquidity level. I’m also in positions on Uber (UBER), Disney (DIS), Advanced Micro Devices (AMD), and Chipotle (CMG) — all set to expire this week.
For next week, I’m tracking setups on Shopify (SHOP), Zillow (Z), Cisco (CSCO), MGM Resorts (MGM), Alibaba (BABA), Airbnb (ABNB), Coinbase (COIN), DraftKings (DKNG), Palo Alto Networks (PANW), and Wynn Resorts (WYNN).
Not all of these will make the cut, but if they price out correctly, I’ll take the trades.
Finally, most traders overcomplicate earnings or take unnecessary risks. The truth is, it’s one of the most systematic trades you can make. When you trade earnings by the numbers — not by gut feelings — the odds of success are in your favor.
I’ll see you in the markets.
Chris Pulver
Chris Pulver Trading
Follow along and join the conversation for real-time analysis, trade ideas, market insights and more!
-
- Telegram:https://t.me/+av20QmeKC5VjOTc5
- YouTube:https://www.youtube.com/@FinancialWars
- Twitter:https://x.com/realchrispulver
- Facebook: https://facebook.com/therealchrispulver
Important Note: No one from the ProsperityPub team or Chris Pulver Trading will ever contact you directly on Telegram.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. Wall Street Is About to Make Its Next Move
If a 1% rally on this stock can force Wall Street’s hand, and make funds buy it hand over fist…
Then you should be interested in it as well…
That’s why I’m in the live room right now with the details of this bulls’-eye stock, as well as how you can take advantage of the massive move when it happens.
And to take things further…
I’ll show you two other stocks with targets on their backs, and even what price Wall Street is set to pull the trigger.
It goes without saying that we can’t guarantee future moves, but it’s almost diabolical how right I can be about these things.
So use this link now to join him in the live room so you don’t miss any of the important details.
