3 Ways I Protect Myself Before Earnings
Hey Trader, This week, a stock I’ve traded dropped $20 on earnings. It’s the reason I hedge stocks before earnings every time. Going into the report, its expected move was just $4. That’s the swing the options market was pricing in. The stock fell 5x further than anyone expected. The company was supposed to earn $1.33 next quarter. Now it expects about 40 cents. Nobody saw that coming. Even inside information on the earnings number wouldn’t have saved you. I’m a guy who’s lost hundreds of thousands around earnings. I never ride a report naked anymore. A few reports like this one take an account from 100 to 75 to 60. That’s usually when people quit. I use three ways to hedge stocks before earnings. I can sell the stock, insure it with a put or buy a straddle. Picking the right one comes down to whether you’re up on