Earnings Season Treasure Trove

It’s earnings season and time to rake in BIG profits.

Last week, the banking industry posted great earnings, and the market took off for another green week.

I love when the market turns green because bullish trends make me more money as a covered call writer.

Let’s see if the good news on earnings continues with the heavy hitters like AAPL, MSFT, AMZN posting their earnings the last week of July and the first week of August.

A little peek of what may be behind the curtain for AMZN is that they announced PRIME DAY earnings were their highest ever. The brand continues to make this day a highlight of the year for shoppers, akin to a summer Black Friday.

For covered call writers, earnings season is a treasure trove of opportunity and lasts about a month before earnings. Call premiums are inflated, and traders flock to deposit those premiums in their trading accounts before the decline in call premiums just after earnings.

This week, I picked up a $480 covered call premium on AMZN on 2-week call that expires on 7/21. That was a 3.75% return for two weeks. NOT BAD. Not bad at all.

I’ve also been trading LEAPS options, which I consider an advanced trade.  

I’m loving using a few strategies with LEAPS.

The time leading up to earnings often results in $2-5 moves in the stock as volatility amps up. These stock moves create an opportunity to trade LEAPS as volatility trades.

The best-kept secret about LEAPS is that they allow traders to get capital gains with far less money invested, so I love this strategy.

If you don’t know what LEAPS are or the theory behind them, it’s not too late to figure this out to make gains this year. The last quarter is when traders can make the most of LEAPS; there's time to get your strategy in order before then.

I'll be hosting a course on LEAPS strategy August 8th at 6pm CST. (You should have a good idea about how to write covered calls and puts before taking this course.)

Join me to get all your questions answered about this powerful options trade.