Earnings Season heated up last week with some stocks posting some incredible moves. DJIA component rallied some 8% on earnings day to a new all time high, $TWTR rallied over 16%, $YELP dropped 20%. $SSYS plunged near $30 lower on poor outlook. $GPRO squeezed $10 higher post earnings and then dropped almost $20 from there.
Big moves in stock prices means big potential profits for Out of the money stock options. Earnings trades offer great potential reward, but with that reward comes the risk for total loss. I always keep size small on an earnings trade.
Last week I was able to capture some of these moves. It's been a great start to 2015.
$DIS calls I bought $92 stike at $.92 a trade I brought to the chat room, live audio in the chat room, and in my morning market videos.
My YHOO calls expired at $0.00 for a total loss.
This week offers more opportunity to lose it all, or gain some 1,000%. Some really nice bottom bounces and earnings moves last week. Stay tuned to the private twitter and the chat room.