Trade journal courtesy of TraderSync.
Summer Earnings Season finished with a small whimper. But we should be please with the performance of the alerts provided to the premium members of this blog. Out of 45 alerts, 64.44% were winners and the average profit was 2.06 to 1. Using an average “risk” position size of $250 per play, the account grew by $2,160 (excluding commission). That is decent growth!
Generally each Earnings Season kicks off with the financials usually in the 2nd week of October. This year, they are delayed by one week. But we get a little bonus pre Season play. I am giving this one to all subscribers this week for everyone to watch as a demonstration of what we do in this blog.
TSM will report Before Market Open on Wednesday, October 13th. My favorite strategy, one which was covered in the Swing Trading / ER Strategies Course (recordings in the welcome email for premium subscribers), is an Earnings Iron Condor. I only trade names that have demonstrated a win/loss ratio of >75% over the past year.
As TSM reports before the bell on Wednesday, entry will be in the last 10 minutes or so of the trading day on Tuesday.
The formula for this type of play is to use weekly options to sell an Iron Condor with the short strikes +/- the value of an at the money straddle. An Iron Condor is simply a bull put credit spread plus a bear call credit spread. The goal is to capture IV crush in the day following earnings. Exit for this trade will be on Wednesday in the last 10 minutes of the trading day. A full video on how to trade Earnings Iron Condors is also located in the welcome email for premium subscribers.
Here is an example of the before and after for TSM Earnings this past July…
Risk graphs courtesy of Toms Option Tools.
If you trade this, it is at your own risk. Please do your own due diligence!!
For all current premium subscribers to Green Goose Trader, the recording for Session 3 of the Swing Trading / ER Strategies Course is located below.
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