loader image

How to Handle Risk in This Volatile Earnings Environment

by | Nov 4, 2022 | Options

I love earnings season, and oh my days… does Wall Street need something to focus other than inflation and interest rates in this market… 

If the COVID-19 inflation hangover and a war-driven energy crisis weren’t bad enough, you have Federal Reserve Chair Jerome Powell and his gang riding roughshod over the markets, trying to fix everything they see by smacking it with a sledgehammer. 

But despite the chop, our New Money Crew strategies continue to stay nimble by using proper position sizing to rack up the earnings wins! Wiretap Alerts got the week started off right with a clean sweep of all four of our options trades, including a monster gain on Wynn Resorts (Nasdaq: WYNN)

Shares took off after Houston Rockets owner and gambling mogul Tilman Fertitta announced his purchase of a large stake in WYNN, sending our options straight to the moon for a 175%* win. 

Those trades helped push the win rate to 71.7% since the start of the service on Sept. 24, 2021, with an average return per trade of 16.1% — including winners and losers — over a three-day average hold time! 

Our Weekly Blitz Alerts strategies followed that up by taking profits on terrific overnight gains on SoFi and Kohl’s Corp. (NYSE: KSS), scoring 47%* and 70%,* respectively!

Tallying the number since the program’s inception on Feb. 21, 2020, the win rate is 68%, the average return per trade — including winners and losers — is 15.2%, with a seven-day average hold time.

And not to be outdone, we took the slow boat to FAST profits, reeling in a fantastic 125%* gain on Fastenal Co. (Nasdaq: FAST) for Alpha Sweep Alerts — bringing the strategy’s win rate up to 68% since its inception on March 18, 2020, while blowing out the average 10.5% gain and 44-day hold time!

With earnings in full swing, at least we still have some stocks that can catch fire — just look at those trade results…. 

But even with big catalysts like earnings, you can’t throw caution to the wind and raise the stakes by trading more size. 

How to Use Position Size to Spread out Earnings Risk

Trust me, no one wants to sling size on earnings plays more than me… But as I like to say, you can only trade the market that’s in front of you

Normally, you’d see me buying 20, 50 or maybe even a couple of hundred contracts in one options trade… 

But pushing that kind of size is too much risk for one position in this choppy mess… 

Instead, I’m staying small and nimble, trading two, five or 10 contracts at most to keep from blowing up my account.

Using proper risk management is critical right now, but there’s more than one way to skin a cat… 

Check out the clip above and let’s talk about different ways we can size up our earnings positions in this volatile market… 

If you’re looking to inject a little more objectivity into your trading, I’m going LIVE at 1 p.m. EDT on Monday, Nov. 7, for an in-depth look at my Master Indicator, where I’ll show everyone how I use it to find hot new trade setups!  

I’m also unveiling a new Telegram channel to keep you up to date on the latest trades, with all of my strategies in one easy-to-use package! Click here to sign up and don’t miss a minute of the action! 

*The profits and performance shown are not typical, we make no future earnings claims, and you may lose money. 

**This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.

WRITTEN BY<br>Lance Ippolito

WRITTEN BY
Lance Ippolito

What to read next

Have any questions? Contact Our Customer Service Team